Figma's Hot IPO Is a Wake Up Call for Adobe
- Ishaan Satija
- 3 days ago
- 1 min read
Figma is set to go public on the New York Stock Exchange this week under the ticker "FIG,"
aiming to raise $1.2 billion at a valuation of up to $19 billion—just below Adobe’s failed $20
billion acquisition offer. The IPO price range was recently raised to $30–$32 per share, reflecting
strong investor interest amid a bullish market. Recent IPOs, such as Circle, Chime, and
CoreWeave, have performed well, fueling optimism around Figma’s debut. A strong opening
could intensify pressure on Adobe, whose stock has declined by over 30% in the past year.
Despite concerns about Adobe’s AI strategy, analysts remain bullish on its long-term prospects,
citing strong fundamentals, high margins, and growing earnings. Some believe Figma’s IPO
could increase investor interest in Adobe.
Analysts believe the design software market is large enough for all three companies to thrive,
driven by the growing demand for digital content and the democratization of creative tools.
While Figma grabs headlines, Adobe continues to show solid financial health, with strong free
cash flow, low debt, and a forward P/E ratio of just 18—slightly above its five-year average.
