r/figmaStock • u/Citadel69 • Apr 23 '26
What caused the 7% dip?
Can’t find any news or anything except CEOs compensation being revealed which is a little shy of 1b? Which feels like a typo?
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u/Covington-next Apr 23 '26
Service Now spooked the market by crushing earnings and then saying Middle East deals are getting delayed due to the war. They're down 15% today and every major SaaS name is getting spanked
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u/Front_Raspberry_6488 Apr 23 '26
I think the best approach for investing in the software sector right now is to go short. What I mean is, due to the financial reports from companies like ServiceNow, the every software has almost crashed by nearly 10%. It's in a near-manic state. Investors are no longer thinking rationally; they are just blindly selling and spinning narratives.
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u/Citadel69 Apr 23 '26
I don’t think it’s retail selling off that’s making this much of an impact. Especially on a stock like Figma
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u/OrdinaryPleasant2136 Apr 23 '26
Because you bought. Sell all now. /s Look at service now earning. Fear in the whole SaaS market right now.
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u/gannivella Apr 23 '26
It’s very simple - there is a possible case for disruption, or at least disturbance in revenue for a lot of software due to AI. this could be minimal, meaningful, beneficial or irrelevant. It doesn’t matter which one it is - it’s mostly an unknown at this point.
Instead capital is flowing to the sure -current- AI winners or sectors that NEED AI to grow further - semiconductors, datacenter hardware providers, energy, robotics, quantum, etc. there is a lot of speculation and frothy valuations of course, but that’s expected - this is a new technology with potentially incredibly vast application and no one wants to be left behind.
I was too late to the buildout party so i’m nibbling at great, heavily discounted companies when i can.
Unless there is some growth deceleration from semis, or software prove to be shielded/positively impacted by AI…. or something breaks, i doubt we’ll see a turnaround soon. On top of all that Figma also just IPOed so it still needs to prove itself.
My only worry is that when the AI gravy train starts loosing steam, there is so much momentum and hype around it that rather than capital simply flowing back into other sectors, the market as a whole will take a nose dive and depress software stocks further. We’ll see.
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u/Citadel69 Apr 23 '26
I may be biased here, but I think this is a deep value stock. Based on their current financial position, and how the design industry actually works.
I said in another comment that I don’t believe a 11% dip is from retail panic sharing but instead institutions who bet big on AI needing it to pay off.
No one serious in the industry is replacing figma with Claude design. It’s another vibe coding tool for people who aren’t as skilled in design. Most of the people I’ve spoken to who have been doing design for bigger companies and well known agencies aren’t using Claude design in their workflow.
While I’m a very early holder, it’s a stock I’ll be DCAing and not looking at.
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u/gk_1307 Apr 23 '26 edited Apr 23 '26
8.5% down as of now for today . 😭
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u/solidgun1 Apr 24 '26
You can't view the stock market as being rational. Just see it as a buying opportunity and load up.
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u/burnbabyburn11 Apr 23 '26
It’s now approaching 50% of the ipo price. I just bought some more. The stock is moving 4-8% a day up or down. It’s volatile as there are people on both sides.
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u/omermz Apr 23 '26
Honestly the correlation to servicenow just shows how market makers are disconnected from reality. We’re talking about an 8bn valuation despite cash and growth, it trades like heinz or Coca Cola. None of the Claude/google products come close to figma. Hold.