Figma’s IPO: A Buy or a Bewilderment?

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One might suppose the chaps at Figma awoke on listing day with the sort of luck usually reserved for those who find a ten-pound note in an old waistcoat pocket. The shares, priced at £33 with all the solemnity of a royal proclamation, sprouted legs and sprinted to £85 by midday—a 158% leap, as though the market itself had imbibed one gin too many and fancied itself a pogo stick enthusiast.

Admittedly, the stars had aligned with the precision of a well-rehearsed West End chorus line. The market, ever the fickle dowager, had once again fallen head over heels for tech stocks, with Nvidia pirouetting skyward like a ballerina on a trampoline. Tariff fears? Pah! They’d slunk off to sulk in a corner, leaving Figma to bask in the spotlight like a debutante at her coming-out ball.

The Rarefied Air of Perfection

IPOs, as any seasoned punter knows, are about as predictable as a rainy day in June—liable to drench one’s portfolio without warning. Yet Figma arrives with the pedigree of a thoroughbred, nary a blemish on its record. Revenue growth? A sprightly 46% over the past four quarters, enough to make a venture capitalist weep with joy. Profitability? It’s already tucking into GAAP operating margins of 17%, a feat akin to finding a butler who also bakes soufflés.

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To Buy or Not to Buy: The Eternal Flummox

Dear reader, while Figma’s fundamentals sparkle like a diamond in a Bond Street window, the current valuation demands the sort of cautious admiration one reserves for a particularly steep staircase. The business, undeniably, is a corker—a veritable Rolls-Royce of design software. But at 70 times sales, even a Jeeves might raise an eyebrow and murmur, “Perhaps wait until the champagne settles, sir.”

A P/S ratio below 50—still a princely sum—might offer a more comfortable perch for the prudent investor. Until then, one might do well to sip tea and watch the spectacle unfold, secure in the knowledge that Figma’s tale is far from a damp squib. 🚀

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2025-08-01 02:49