Figma Inc. shares are trending on Wednesday night.
Shares of the software company fell 0.24% to $25.20 in after-hours trading on Wednesday.
According to Benzinga Pro data, the stock had dropped 7.98% in the regular session to close at $25.26. The decline comes as investors react to a direct competitive challenge from Alphabet Inc..
Figma is a cloud-based collaborative design platform widely used by product teams and UI/UX designers to build and prototype software interfaces.
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Google Labs, an experimental division of Google and a subsidiary of Alphabet, unveiled a major update to its Stitch platform on Wednesday, repositioning it as an AI-native software design canvas with AI-powered UI design and prototyping capabilities that directly compete with Figma.
Rustin Banks, Product Manager at Google Labs, said the updated tool introduces “vibe designing,” a workflow that allows users to generate high-fidelity user interfaces from natural language, bypassing traditional wireframing entirely. This is the exact creative territory Figma dominates among professional designers and product teams.
Stitch also debuts voice-driven design, an agent manager to handle multiple ideas simultaneously and MCP server integration that exports designs directly to developer tools, along with a DESIGN.md export system that allows teams to carry design rules across projects and coding tools.
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In February, Figma reported fourth-quarter revenue of $303.78 million and earnings per share of $0.08.
Figma has a market capitalization of $13.18 billion, with a 52-week high of $142.92 and a 52-week low of $18.41.
The Relative Strength Index (RSI) of FIG stands at 42.12.
Over the past 12 months, the mid-cap stock has dropped 78.13%.
Currently, FIG is positioned very close to its annual low.
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Photo by rblfmr via Shutterstock
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