I have to admit, I won't be jumping in to catch a sharp falling knife like Figma's $Figma(FIG)$ recent 20% plunge. The volatility is a bit too much for my taste, especially after seeing the stock take such a hit post-earnings. I'm not Cathie Wood with her massive ARK Invest funds to cushion the risk—haha, I wish I had that kind of firepower!
Given that Figma surpassed revenue estimates with $249.6 million against the expected $248.8 million, and even turned a modest $846,000 profit compared to a huge $827.9 million loss last year, it's tempting. But the lock-up expiry and the 35% share extension some investors agreed to make me cautious. That kind of overhang could keep the pressure on the stock price for a while.
I'm more inclined to wait for a clear trend reversal signal before making a move. Sure, the price might be higher by then, but I value stability and confirmation over chasing a potential bargain. ARK's $5.9 million investment in 108,238 shares through ARKW shows confidence, but I don't have the resources or appetite to follow suit right now.
As for the dip below $50, I'd hesitate to call it a buy just yet. The uncertainty around the lock-up extension and market sentiment could push it lower before it stabilizes. I'd rather sit tight and watch how the story unfolds rather than guess where the bottom might be.
If Figma dips all the way back to its $33 IPO price, I still wouldn't rush to add. That level might look attractive, but without a solid reversal signal, I'd be worried about getting caught in another downturn. I prefer to let the dust settle and see consistent upward momentum first.
Overall, my approach is conservative. I'll keep an eye on Figma's performance and the broader market, but I'm not in a hurry. Waiting for confirmation might mean missing the lowest entry point, but it also means I'll sleep better at night knowing I'm not gambling on a rebound.
For now, I'll pass on this one and let the trend guide my next step.
As a retail investor, I focus mainly on the US and Singapore markets, combining a mix of technical trading and long-term investing strategies. I enjoy analyzing charts, spotting patterns, and making calculated moves based on both market sentiment and fundamentals. While I'm not a professional, I treat my portfolio seriously and continue to learn and grow with each trade. If you're also navigating the markets and enjoy discussing stocks, options, or market trends, feel free to follow me. Let's learn and grow together as a community.
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