Figma, Inc.

Figma shares fell 14.9% on Thursday after the design software company reported second-quarter results that beat estimates but revealed a 117% surge in cost of revenue driven by AI infrastructure expenses. Revenue rose 48% to just above $370 million, topping the $351.5 million consensus, and adjusted earnings of $0.08 per share doubled expectations. However, third-quarter revenue guidance of $373 million to $375 million implies growth slowing to about 36%, and CEO Dylan Field announced the departures of the chief marketing officer and chief product officer. The company noted it is paying to run AI features that are not yet fully monetized, while net dollar retention remained strong at 136% and the number of customers paying at least $10,000 a year grew 34% to 15,964. Rising competition and an upcoming lock-up expiration that could release millions of shares add to near-term headwinds.

Figma Chief Technology Officer Kris Rasmussen sold approximately 261,000 shares of Figma Inc. at $25.07 per share on July 29, 2026, for a total transaction value of about $6.6 million. The sale was executed under a Rule 10b5-1 trading plan established in August 2025, which allows insiders to schedule sales in advance for personal liquidity needs. Following the transaction, Rasmussen retains roughly 9.5 million shares directly, representing a 0.0008% ownership stake in the company. Figma, which develops collaborative browser-based design software, reported trailing-twelve-month revenue of $1.2 billion and a net loss of $1.5 billion, and its stock has declined 79% over the past year amid broader concerns about artificial intelligence impacting SaaS demand. The company recently announced Rasmussen will transition from Chief Technology Officer to Chief Architect.

Software stocks declined sharply on Thursday, led by drops of more than 15% in Datadog, Figma, and HubSpot following their quarterly results. Datadog beat top- and bottom-line estimates but posted an adjusted gross margin of 80%, slightly below the 80.7% consensus. Figma also beat estimates but flagged rising AI inference spending, with its CFO noting the company bears the cost of inference for beta products without offsetting revenue, causing near-term gross margin variability. The iShares Expanded Tech-Software Sector ETF fell more than 2%, and while the sector has rebounded over 35% from its April low, it remains down 3% year to date.

Several stocks made significant premarket moves following earnings reports and guidance updates. Peloton Interactive sank nearly 14% after reporting a year-over-year decline in active paying subscribers of 8.8%, despite revenue topping expectations. Moderna rose 4% after the FDA approved its mRNA flu vaccine, mFlusiva, for adults 50 and older. Versant Media jumped 5% after raising its full-year outlook and beating top and bottom lines, now expecting 2026 revenue of $6.2 billion to $6.45 billion and adjusted EBITDA of $1.9 billion to $2.05 billion. Warby Parker shed 7% after second-quarter revenue of $235.5 million missed the LSEG consensus estimate of $238 million, though EBITDA topped expectations and full-year guidance was reaffirmed. IonQ rose 3.9% on better-than-expected second-quarter revenue and full-year revenue guidance of $280 million to $290 million, exceeding the FactSet consensus of $268.6 million. Sandisk slid 10% as first-quarter revenue guidance of $10.3 billion to $10.8 billion appeared to disappoint traders, with the LSEG consensus at $10.47 billion, despite fourth-quarter beats. Figma shed 14% after full-year adjusted operating income guidance of $125 million to $135 million came in soft versus the FactSet consensus of $133.2 million. DoorDash added 4% after quarterly revenue of $4.45 billion beat the LSEG consensus of $4.34 billion. Zillow slid more than 11% after expanding CFO Jeremy Hofmann's role to include COO, while also reporting adjusted EPS of 52 cents beating estimates of 45 cents and revenue of $772 million beating estimates of $758 million, a day after announcing about 500 layoffs. Western Digital slumped more than 15% as current-quarter projections underwhelmed, calling for adjusted earnings of $4 a share on revenue of $4.1 billion, versus consensus of $3.81 a share on $4.04 billion. Salesforce fell almost 5% after naming Miguel Milano as operating chief. Duolingo tumbled 7% after current-quarter revenue guidance of $302 million missed the FactSet consensus of $303.9 million. Bumble fell 5% after posting a second-quarter loss of 84 cents per share versus an expected profit of 25 cents, and issuing third-quarter adjusted EBITDA guidance of $56 million to $60 million below the $68.7 million consensus. AppLovin tanked nearly 20% after third-quarter adjusted EBITDA guidance of $1.71 billion to $1.74 billion missed the StreetAccount consensus of $1.75 billion.

Shares of Figma fell 16.5% this week as investors grow increasingly concerned that artificial intelligence companies will disrupt software stocks. The sell-off comes ahead of Figma's second-quarter earnings report early next month, with the stock trading at a forward price-to-earnings ratio of 158, leaving little room for error. First-quarter revenue rose 46% to $333.4 million and full-year guidance was raised to more than $1.4 billion, but the launch of Anthropic's Claude Design in late April has intensified competitive fears. An incident involving an unreleased OpenAI ChatGPT model hacking a website during a cybersecurity test further underscored the sophistication of AI, even though Figma is not a cybersecurity company. Figma reports its second-quarter results on August 5.

Figma shares fell 29% in June, driven by ongoing concerns that AI-native software could disrupt its design platform. The decline was part of a broader sell-off in software stocks, with disappointing earnings from Salesforce, Adobe, and Oracle intensifying worries about seat-based SaaS companies losing subscriptions to AI alternatives. The stock stabilized in the second half of the month after Citigroup initiated coverage with a buy rating and a $36 price target, citing strong AI traction including seat upgrades. Figma also held its Config conference, announcing new features like code layering, but the positive analyst commentary that followed provided only limited support. The stock has since rebounded in July, recovering more than half of its June losses.