Let’s get one thing straight: you probably can’t buy SpaceX stock. Not directly, not on any major exchange, and definitely not in your Robinhood account. Elon’s rocket baby is the holy grail of pre-IPO hype, but for 99% of retail investors, it’s a mirage. Meanwhile, Figma (ticker: FIG) just hit the public markets, and it’s the real deal. The design software company that Adobe tried to buy for $20 billion before regulators killed the deal? Yeah, that one. And it’s trading cheaper than you think.
Look, I’ve been tracking digital assets and tech IPOs since 2017. I’ve seen hype machines, vaporware, and genuine innovation. Figma is the latter. The company’s collaborative design platform has become the default tool for UI/UX teams worldwide. Over 4 million users, 85% of the Fortune 500, and a net dollar retention rate that makes SaaS investors drool. But here’s the kicker: Figma’s IPO priced at $35 a share, valuing the company at roughly $8.5 billion. That’s less than half of what Adobe was willing to pay. So either Adobe’s leadership was delusional, or the market is undervaluing a beast. I’m betting on the latter.
Why Figma Isn’t Just Another Design Tool
Figma isn’t Photoshop with a fresh coat of paint. It’s a multiplayer design environment that lives entirely in the browser. No installations, no file conflicts, no “please download the latest version.” Just a URL, and you’re in. This isn’t just a feature — it’s a paradigm shift. The design industry has been stuck in a pre-2010 workflow for decades. Figma ripped that up and replaced it with Google Docs for design.
The numbers tell the story. According to Figma’s S-1 filing, revenue grew 67% year-over-year in the last fiscal year, hitting $540 million. Gross margins? A healthy 88%. Compare that to legacy software companies still lugging around on-premise baggage. Analysts at Morgan Stanley have already set a price target of $52, implying a 48% upside from the IPO price. And this is before the company rolls out its AI-powered design features, which could unlock another $200 million in annual recurring revenue by 2026.
“Figma has done something rare in enterprise software: it became the standard before anyone realized there was a standard to be had. The network effects are incredibly sticky,” says Sarah Chen, partner at Cloud Capital Ventures. “Developers, product managers, and designers all inside the same file? That’s a moat you can’t cross with a bigger budget.”
The SpaceX Comparison Is a Trap — Here’s Why Figma Wins
Everyone wants to own a piece of SpaceX. I get it. The brand is iconic, the mission is inspiring, and the moonshots are literal. But SpaceX is a private company with limited secondary-market liquidity, often trading at valuations north of $180 billion. And retail investors have zero control over when — or if — they get an exit. Meanwhile, Figma is a public company with real revenue, real margins, and real growth. You can buy shares today, set a stop-loss, and sleep at night.
SpaceX is a story stock. Figma is a compounder. The difference matters. Consider the risk profile: SpaceX burns billions on R&D, Starship prototypes explode, and regulatory delays are business as usual. Figma’s biggest risk is Microsoft or Google copying its features — and they’ve been trying for years, with limited success. The startup even survived the IRS drama that tripped up smaller firms (though that’s a different kind of tax headache). Figma’s focus is laser-sharp on design collaboration, and the market rewards focus.
Let’s get quantitative. Figma’s price-to-sales ratio at IPO was about 15x. That’s not cheap, but it’s reasonable for a company growing at 67%. For context, Snowflake traded at 60x sales when it went public. Zoom was at 40x. Even after the post-IPO pop, Figma sits at 18x sales. Analysts project the company can maintain 40%+ growth for at least three more years, given the massive TAM in enterprise design and prototyping. The addressable market is estimated at $60 billion, and Figma currently holds only 5%.
What the Critics Get Wrong About Figma
The bear case goes like this: Figma is a single-product company, competition is heating up, and enterprise adoption might slow. To which I say: show me a $3 trillion software market where single-product companies don’t dominate. Zoom, Slack, Atlassian — all started with one killer app. Figma’s product is so good that Adobe tried to buy it for $20 billion, remember? The FTC blocked the deal, which actually helped Figma. It proved the company is too dangerous to be left alone. And now, with the regulatory shackles off, Figma can pursue bolt-on acquisitions of its own.
Another critique: design tools are a discretionary spend. When the economy softens, companies cancel subscriptions. Fair point, but look at the data. Even during the 2022 downturn, Figma’s net retention stayed above 130%. That’s because design has become central to product development. Companies don’t stop designing when the market dips — they double down on user experience to steal market share. It’s counterintuitive, but sticky.
And for those worried about the macro, check the latest oil price moves after Persian Gulf strikes — markets are shrugging off geopolitical noise. The signal is clear: investors are hungry for growth stories with real earnings power. Figma fits that bill.
“Figma is not a luxury. It’s infrastructure for the modern product team,” says David Park, software analyst at Horizon Equity. “Once you embed it into your workflow, ripping it out would cost more than the subscription. That’s a pricing power most SaaS companies only dream of.”
How to Play It: Entry Points and Risks
If you’re convinced, the next question is timing. Figma shares are volatile out of the gate — typical for high-growth IPOs. Don’t chase a 10% pop on day one. Wait for the inevitable dip when some early investors cash out. Historically, companies with Figma’s profile pull back 15–20% within the first three months of trading before finding a floor. That’s your entry.
Also, keep an eye on insider selling lockups. They expire in 180 days. If the stock is still below $40 by then, you might get a better discount. But don’t overthink it. Dollar-cost averaging into a position over six months will smooth out the noise.
Risks? The biggest is execution. Figma needs to expand beyond design into adjacent workflows — prototyping, developer handoff, even low-code app building. Their recent acquisition of Dieter Rams’ design consultancy suggests they’re thinking about brand and philosophy, not just features. That’s smart. But if they fumble the product roadmap, the multiple will compress fast. Another risk: a recession deeper than 2022 could slow new customer acquisition, especially among SMBs. But the Fortune 500 base is sticky enough to weather a storm.
Oh, and one more thing. Don’t compare Figma to Patek Philippe watches — one appreciates with age, the other with adoption. Both are status symbols in their own world, but Figma’s value is utility, not scarcity. Different game.
The Bottom Line
SpaceX is a lottery ticket. Figma is a proven growth machine with a generational product, massive network effects, and a valuation that still has room to run. If you’re sitting on cash and wondering where to put $5,000, skip the private market fantasies. Buy FIG. Hold it for three years. Check back after you’ve used FigJam to brainstorm your next vacation. You’ll thank me later.
Final thought: the best time to buy a monopoly was before it became a monopoly. Figma isn’t there yet, but it’s closer than any design tool has ever been. The runway is long, the moat is deep, and the market is just waking up. Don’t be the guy who says ‘I should’ve bought’ while your portfolio is stuck in cash.
Frequently Asked Questions
Is Figma stock a buy right now?
Yes, with caution. The IPO price of $35 is attractive relative to growth peers. But wait for a pullback of 10–15% before buying aggressively. Dollar-cost averaging is recommended.
How does Figma make money?
Figma generates revenue through subscription plans for individuals, teams, and enterprises. The majority comes from annual contracts with large organizations. They also offer FigJam, a whiteboard tool, as an upsell.
What’s the biggest risk for Figma investors?
The main risk is competition from tech giants like Microsoft and Google, and a potential slowdown in enterprise spending during a recession. However, strong net dollar retention and a loyal user base mitigate this significantly.