I think Figma will easily fall by more than 10%. I think there is a good chance that it will close at $47 this week. Like CoreWeave and circle, these stocks have risen far beyond what they should be worth and driven by momentum. Earnings will be the litmus test of what it should be worth and might send the stock crashing if it misses the expectations by a lot.
I won’t buy it at $65 as I feel that its IPO price is what it is worth and assuming that fundamentals remain the same, I would only consider buying it when the price is below its IPO price. A forward P/E of 370 is insane, giving it a lot of room to crash!
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