Why Figma Stock Tumbled by Nearly 11% on Tuesday
Summarize this article with:
By Eric Volkman – Feb 3, 2026 at 7:38PM ESTKey PointsAn analyst slashed her price target on the digital design specialist.Despite the rather assertive move, she maintained her bullish recommendation. We’re bullish on these 10 stocks ›The software stock rout continued.The only design many investors had on Figma (FIG 10.88%) stock on Tuesday was to sell it aggressively. On the back of a drastic price target cut by an analyst tracking the design software company, market players traded out of the shares, leaving them with a loss of almost 11% on the day. That's one deep cut Before market open, Piper Sandler's Hannah Rudoff cut her company's fair value assessment on Figma in half, reducing it to $35 per share from the previous $70. Despite that rather significant change, Rudoff maintained her recommendation of overweight (read: buy) on the specialized tech company's equity. Image source: Getty Images. The adjustment was part of a broader reconsideration of the software segment of the tech market. According to reports, Rudoff believes investor bearishness about its future will continue to affect sentiment for the segment's titles. Instead, the analyst opined, people might be better off now focusing on some of the hotter areas in the tech world, such as hyperscalers (operators of high-capacity data centers). ExpandNYSE: FIGFigmaToday's Change(-10.88%) $-2.61Current Price$21.39Key Data PointsMarket Cap$12BDay's Range$20.94 - $23.4252wk Range$20.94 - $142.92Volume26MAvg Vol7.8MGross Margin85.74% Software softness In my view, many software stocks have been unfairly punished for appearing to steadfastly remain in "legacy," technology, instead of a more advanced field like artificial intelligence (AI). In Figma's case, looks can be deceiving. The company has not only embraced AI as an assistive technology for its offerings, it went so far as to acquire Weavy -- a start-up that uses AI for generating images and video -- last October. The gloomy sentiment that now pervades many stocks even tangentially associated with software is unsustainable, I think, and I'd say the same for Figma's depressed stock price. Read NextFeb 3, 2026 •By Beth McKennaNvidia Stock Investors Got Great News From Palantir and TeradyneFeb 3, 2026 •By Stefon WaltersUp 1,500%, Should You Buy Sandisk Right Now?Feb 3, 2026 •By Johnny RiceWhy Rigetti Stock Fell 18% in January To Start 2026Feb 3, 2026 •By Keithen Drury3 Reasons to Buy the Dip on Microsoft StockFeb 3, 2026 •By Adria CiminoWill Apple's Explosive Growth Continue?
This Often Overlooked Figure Answers the Question.Feb 3, 2026 •By Geoffrey SeilerThis Overlooked Artificial Intelligence (AI) Stock Could Be the Surprise Winner of 2026About the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedPiper Sandler CompaniesNYSE: PIPR$335.27 (0.03%) $10.83FigmaNYSE: FIG$21.39 (0.11%) $2.61*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.