Shares of Figma (FIG) slid 5.8% to $18.99 on April 9, extending a punishing week that has erased 10.8% of the stock's value since April 2. The selloff — against a market that was up modestly — signals that investors are growing nervous about two colliding forces: generative AI tools threatening to commoditize design software and a wave of insider selling that shows no signs of slowing.
• AI Is Eating Into Profits Faster Than It's Generating Revenue. Figma's non-GAAP gross margin fell to 82.4% in 2025 from 92% in 2024 as AI infrastructure costs surged, and operating margin is guided to compress further to around 8% in 2026. That's a dramatic cost increase just to power the company's AI design features. For 2026, Figma sees only $100 million to $110 million in adjusted operating income on roughly $1.37 billion in revenue — meaning the company keeps roughly seven cents of profit on every dollar it brings in. If AI costs keep climbing and the new credit-based pricing model doesn't catch on fast, the path to real profitability gets longer.
• Insiders Are Selling Heavily, and the Market Notices. CEO Dylan Field has sold the most FIG stock in the last two years, with a total value of $219 million, while the total value of insider transactions amounts to negative $820 million.
The stock is also still digesting the impact of its January 27 lock-up expiration, which released hundreds of millions of shares into the market. For a company that went public less than a year ago, this volume of selling undercuts any bullish narrative management tries to spin.
• Adobe and AI Startups Are Closing In on Both Sides. Startups like Midjourney, Runway, and OpenAI's video-generation tools are challenging dominance in content creation , while Adobe is beginning to see meaningful revenue expansion from customers paying for AI credits and premium generative AI features. Figma sits in the middle: too expensive for casual users being won over by free AI generators, yet lacking Adobe's enterprise depth and IP-safe training data.
• The Numbers Say Growth, but the Stock Says Doubt. Full-year 2025 revenue hit $1.056 billion — up 41% — but 2026 guidance implies a slowdown to 30% growth.
Eight analysts give Figma a consensus Hold rating with an average price target of $48.12 , more than double today's price. The gap between analyst optimism and the stock's 33.5% year-to-date decline tells you the market is demanding proof, not promises, that AI spending will eventually pay off.