Figma's Stock Just Got Slashed in Half. Is This the Tech Bargain of the Decade?

You've almost certainly used a product designed with it. Your favorite app was likely prototyped on its revolutionary platform. Figma, the undisputed darling of the design world, is a titan in the tech industry—a tool so essential it's practically become a verb for collaborative creation. But while designers, developers, and product teams can't get enough of it, Wall Street is singing a very different, and much more brutal, tune.

In a stunning reversal of fortune, Figma's stock has been absolutely hammered over the past 12 months, cratering by an eye-watering 54%. The once-unbeatable tech superstar has seen its shares tumble to multi-year lows, leaving early investors shell-shocked and potential buyers wondering if a golden opportunity has just appeared.

Hype vs. Reality

So, what's behind this brutal sell-off? It's a classic case of hype getting way ahead of reality. For a long time, investors priced Figma for absolute perfection, sending its valuation into the stratosphere based on its immense popularity and potential. The concern now roiling the market is that the company's actual financial performance, while strong, simply couldn't keep pace with that sky-high price tag. In response, Wall Street has slammed the brakes, forcing a painful correction and demanding that the company's growth catch up to its once-lofty reputation.

The $27 Billion Question

This is where things get incredibly interesting for savvy investors. With the stock price effectively cut in half, the million-dollar question—or rather, the $27 billion question—is whether Figma has finally become a bargain. Despite the massive haircut, the company still commands a market capitalization of roughly $27 billion (as of late October). That's no small figure; it's a valuation that screams Wall Street is still betting on explosive future growth.

For potential buyers, this creates a fascinating dilemma. On one hand, you have a company with a universally beloved product, an intensely loyal user base, and a dominant position in a critical market. The potential for long-term expansion is undeniable. On the other, a $27 billion valuation for a company whose stock just imploded suggests significant risk remains. The steep decline has put Figma back on the radar, but the critical decision is whether this 54% plunge represents a true buying opportunity or just the first leg of a longer journey down.