Before Figma Goes Public, Should You Double Down on Adobe or Bet on the Underdog?

After a long drought, the initial public offering (IPO) market seems to be springing to life. After more than 1,000 companies debuted on the public markets during the exuberance of 2021, the ensuing three years have been comparatively quiet, with 181, 154, and 225 IPOs in 2022, 2023, and 2024, respectively. With approximately half of 2025 in the rearview mirror, we've already seen nearly 200 IPOs, putting the current year on a pace not seen in quite a while.One of the most anticipated debuts is from the creative software company Figma, which is expected to go public as early as late July. If that name sounds familiar, it's likely because of the attempted 2022 acquisition by rival Adobe (NASDAQ: ADBE) that was terminated after antitrust concerns. Let's take a look at both companies to see which is more deserving of investors' capital.When Adobe announced its plan to acquire Figma, much commentary was generated about the move and its associated price tag of $20 billion. To some, it seemed like an expensive but necessary move to bring a rival's software offering under Adobe's suite of products. To others, it was an admission that Adobe was losing ground to newer entrants in the creative software space. In the end, it didn't end up mattering as the deal fell apart and Figma remained private.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool