This article first appeared on GuruFocus.
Cathie Wood’s ARK Invest added to Figma (NYSE:FIG) and trimmed DraftKings (NASDAQ:DKNG) on Feb. 19, as part of a broader portfolio reshuffle.
ARK funds bought about $24 million of Figma shares after the cloud design platform posted fourth-quarter fiscal 2025 results that topped estimates. The stock climbed more than 6% on the earnings update.
Figma reported earnings per share of $0.08 on revenue of $303.8 million, both ahead of consensus. The company also guided fiscal 2026 revenue to $1.366 billion to $1.374 billion, above market expectations. Management said demand for software remains intact despite debate around generative AI.
The company’s Figma Make tool uses artificial intelligence models from Alphabet (NASDAQ:GOOGL) to turn text prompts into app prototypes. Figma plans to introduce monthly AI credit limits and usage-based pricing starting in March.
ARK also purchased shares of Compass Pathways (NASDAQ:CMPS) and Recursion Pharmaceuticals (NASDAQ:RXRX). Compass recently priced a 17.5 million share secondary offering at $8 each. Recursion shares rose after Nvidia (NASDAQ:NVDA) disclosed it exited its stake in the company in the fourth quarter.
