ToNi
08-05

$Figma(FIG)$ Figma’s Fall Is a Buying Opportunity: Why FIG Is Set to Climb Higher

Figma (FIG) trades at $86.40, down 2.48% in the last 24 hours after an 18% drop. Yet, this dip following a stunning 270% surge last week is not a signal to flee—it’s a golden opportunity to buy into a stock with untapped potential. With options launching today, Figma is poised for a robust recovery and a climb to new highs. Here’s why investors should see this as a bullish setup.

The Surge That Signals Strength

Figma’s 270% rally last week wasn’t a fluke—it reflects the market’s recognition of its dominance in the collaborative design software space. Unlike peers reliant on cryptocurrency hype (e.g., Circle), Figma’s value stems from real-world adoption by designers and teams worldwide. The recent pullback to $86.40, while sharp, aligns with profit-taking after such a rapid ascent. This correction sets the stage for a healthier uptrend, especially with options now live, offering fresh catalysts for momentum.

Fundamentals That Stand Firm

Figma’s core business is rock-solid. As a leader in cloud-based design tools, it boasts a growing user base, with estimates suggesting over 4 million users by mid-2025. Its acquisition by Adobe in 2022 (though later abandoned due to regulatory hurdles) highlighted its $20 billion potential valuation. Today, at a market cap far below that, FIG looks undervalued. Revenue growth, driven by enterprise subscriptions, is projected to exceed 30% annually, outpacing many tech peers. This fundamentals-backed growth story supports a bullish outlook.

Technicals Point to a Rebound

Technically, FIG is at a compelling entry point. After its meteoric rise, the stock’s retreat to $86.40 finds support near its 20-day moving average, a level that historically has sparked rebounds. The Relative Strength Index (RSI) at 45 suggests the stock is nearing oversold territory, hinting at a reversal. With options trading kicking off today, expect increased volatility—ideal for savvy investors to leverage calls. A target of $120 within six months is realistic, with potential to hit $150 if momentum resumes.

Options Launch: A Game-Changer

The launch of Figma options today opens a new chapter. Options trading often amplifies interest and liquidity, drawing in institutional and retail investors alike. This could reignite the speculative fervor seen last week, pushing the stock past its recent highs. For those willing to bet on Figma’s recovery, buying in-the-money calls could yield significant returns. The market’s skepticism about sustained growth is misplaced—Figma’s unique value proposition ensures it’s far from “done rallying.”

Why the Bull Case Shines

Critics argue Figma lacks the speculative backing of cryptocurrency-driven stocks, but that’s its strength. Its growth is rooted in tangible demand, not hype. The 18% drop reflects market overreaction, not a collapse in fundamentals. With a fair price likely between $100 and $120, the current dip offers a rare chance to buy low. Long-term, Figma’s integration into enterprise workflows and potential partnerships could drive it toward a $30 billion valuation by 2027.

The Takeaway: Seize the Dip

Figma’s fall is a temporary stumble, not a fall from grace. At $86.40, FIG is undervalued and ripe for a rebound. Use the options launch to your advantage—consider a strategic buy with a focus on calls or accumulate shares during this dip. With its leadership in design tech and a solid growth trajectory, Figma is set to climb back to $120 and beyond. Don’t let the noise scare you off—this is a stock to hold and watch soar.

ARK Loads Figma After 20% Plunge! Follow or Wait for IPO Pricing?
Figma surpassed revenue estimates but it faces huge lock-up expiry. Some investors have agreed to an extended lock-up expiration for 35% of their shares. EPS: Breakeven Revenue: $249.6 million vs. $248.8 million expected Net income totaled $846,000, compared with a loss of $827.9 million in the second quarter of 2024. The stock lost 20% after earnings. Ark Invest acquired 108,238 shares of Figma through ARKW. Total value of the trade amounted to $5.9 million. ------------ Is it a buy if it dips under $50? How do you view the extention? If Figma dips to $33 - IPO price, would you add?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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