Fact or Fiction: Figma, the Stock Market's Latest Monster IPO, Is Overvalued

In late 2022 and into 2023, Adobe tried to remove a key competitor from its landscape by acquiring the innovative design and coding company Figma (NYSE: FIG) for $20 billion. The deal would ultimately fall apart, and today, most Figma's shareholders are likely thankful it did.Figma went public on Aug. 1, and its stock price more than tripled, quickly catapulting to a more than $59 billion market cap, due to insatiable demand from investors. Large IPOs have seen success this year, as the market has begun to thaw after a few difficult years. While Figma is certainly a very promising company and the stock has begun pulling back to a market cap of $44 billion, it's still valued for more than twice as Adobe's offer. Does Figma truly deserve this monstrous valuation?As I mentioned above, large IPOs like CoreWeave and Circle have performed tremendously well. It could perhaps be due to a lack of IPOs in recent years or exuberance around the crypto and artificial intelligence sectors. IPOs that can show big growth and some semblance of profitability have been met with high praise and excitement.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool