I think it’s fair to say that no ones knows what the stock market is doing with Trump’s tariffs bouncing all over the place. Prices are all over the road with some stocks gaining or losing 30% in a day. With this kind of speculation its really to find the true value in stocks.

Today, Figma (FIG) went public. It went up 250% to a market cap of 47 billion. I’ve used figma and I’m sure the scale is huge and that it can serve a world of diverse customers. Is it worth 47 billion – that’s a little hard to digest. The growth from 2023 to 2024 doesn’t measure up to a 3X ipo day.

I think many tech people jumped into this IPO but I doubt as many will stick around for the long term. Short term Puts could work out well.

In my view Figma should take this new cash and buy as many income producing assets as possible. Specifically, they should buy companies creating products that can work with Figma’s products like instructional design (before using figma) and website design and implementation companies (after using figma). Doing this will cement their stickiness to the processes automatically avoiding completion. So, who do they buy and are those companies better off under the Figma name?

In my opinion the management of the company is extremely important. The right team could take this new capital and become a quick champion. In the next 5 to 10 years I feel todays Figma product will be a small product of a much larger process controlled by a large conglomerate. Whether that large conglomerate is the existing Figma company or not is the question.

I need to do more research about the current product offering, the management team, and their customers.