Figma Shares Plunge After Volatile IPO Debut

Figma's IPO was a highlight in the revived U.S. IPO market, with shares initially surging over 200% above the offer price before plunging more than 23% and wiping out $11 billion in market value. The rapid drop was attributed to profit-taking and concerns over the company's steep valuation and IPO pricing, which analysts suggested was underpriced with only a small share float. Figma's market cap remained well above Adobe's failed $20 billion acquisition offer, which regulators blocked over antitrust concerns. The public offering has reignited debate among antitrust advocates over whether tech startups should remain independent or be acquired by larger firms. Strong investor interest in Figma and other firms like Klarna and a SpaceX rival signals renewed appetite for tech IPOs despite ongoing volatility. Figma's robust revenue growth and profitability continue to differentiate it from many recent tech IPOs.