Figma, Inc. (FIG): A Bull Case Theory

We came across a bullish thesis on Figma, Inc. on Bullseye Picks’s Substack by Bullseye Investing. In this article, we will summarize the bulls’ thesis on FIG. Figma, Inc.'s share was trading at $27.07 as of January 29th. FIG’s forward P/E was 67.57 according to Yahoo Finance.

Figma, a web-based platform for designing, prototyping, and building digital products such as websites and apps, represents a leading disruptor in the design software sector, particularly against entrenched competitors like Adobe. Despite having only two quarters of public financial data, Figma has demonstrated strong adoption and engagement among users, signaling its potential for rapid growth.

Using the most recent quarter as a reference and assuming 20% revenue growth for the next year, the company’s implied price-to-earnings ratio stands at 63.49, reflecting a rich valuation that underscores the market’s expectations for continued expansion. Figma’s recent IPO introduced volatility and concerns about overvaluation. Yet, the company does not face profitability issues, unlike many newly listed peers, making its risk profile largely tied to price expectations rather than operational performance.

At its peak, Figma traded above $120 per share, but the current price of $38 per share appears more reasonable and can be justified depending on an investor’s conviction in its long-term growth potential and market disruption capabilities. The combination of its innovative platform, competitive positioning, and strong user engagement provides a compelling narrative for investors who are bullish on the digital design ecosystem, while the current pricing offers a more accessible entry point compared with the heights reached post-IPO.

Overall, Figma represents a high-growth, high-valuation opportunity in the digital design space, where upside potential is significant but closely tied to market sentiment and execution on its expansion trajectory.

Previously, we covered a bullish thesis on Adobe Inc. (ADBE) by jackandjillonthehill in May 2025, which highlighted the company’s dominant position in high-margin software, resilient subscription revenue model, strong free cash flow, and growth opportunities in AI and digital content. ADBE’s stock price has depreciated by approximately 22.22% since our coverage as investors are worried that Adobe’s AI strategy isn’t being monetized fast enough. Bullseye Investing shares a similar focus on software innovation but emphasizes Figma’s role as a disruptive platform, rapid adoption, and post-IPO growth potential.

Figma, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held FIG at the end of the third quarter which was 0 in the previous quarter. While we acknowledge the risk and potential of FIG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FIG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.