Figma IPO: Caution Over Overvaluation Despite Stellar Gains

**Figma's IPO Sparks Caution Over Overvaluation Despite Rapid Gains** Figma, Inc. (NYSE: FIG) went public on July 31, 2025, with an initial share price of $33. The stock experienced a remarkable surge, closing at $115.50 on the first day—an increase of approximately 250%. Although the stock has since cooled somewhat, its valuation remains high, with a forward price-to-sales ratio of 60, raising concerns about its long-term investment potential. Analysts utilizing a conservative yet optimistic model project a 12-month return of roughly 10-12%, suggesting moderate growth ahead. Investors are advised to exercise caution, considering the high valuation and market conditions. Strategic positioning involves seeking opportunities where others overlook, embodying the principle of being cautious when market enthusiasm is high. **Disclosures:** The author holds no positions in Figma or related securities and has no plans to initiate such positions within the upcoming 72 hours. The opinions expressed are personal and not influenced by external compensation. This analysis aims to inform readers and does not constitute investment advice. Past performance is not indicative of future results, ...