Figma IPO Soars 227%: Jim Cramer Warns of Bubble as Valuation Hits $44 Billion

The design software world erupted as Figma’s stock skyrocketed 227% during its market debut, instantly creating a $44 billion AI-powered titan. Yet even amid the champagne toasts on the NYSE floor, CNBC’s Jim Cramer sounded a stark alarm: “Pull your market orders now.” His warning spotlighted a valuation hitting 53.5× sales—a stratospheric multiple that left investors questioning if the rocket had already run out of fuel.

Is Figma’s Record-Breaking IPO Overvalued?

Cramer’s urgency stems from brutal market math. Figma’s $44 billion valuation dwarfs its $821 million trailing revenue—a 53.5× price-to-sales ratio virtually unmatched in recent tech listings. “Paying 50 times sales? History isn’t kind to that bet,” Cramer declared on social platform X, citing Circle Internet Financial’s 29% plunge after its own post-IPO peak. While Figma’s AI-driven design tools serve elite clients like Google, Netflix, and the U.S. Department of Education, Cramer insists its 40% annual growth can’t justify such extremes. The IPO priced at $33/share—already above expectations—then exploded to $108.19 at opening bell.

Why High-Profile Clients Haven’t Calmed Skeptics

Figma’s enterprise pedigree is undeniable. Beyond tech giants, it powers critical interfaces for the IRS and Department of Education—a testament to its platform’s robustness. Q2 revenue projections between $247M-$250M reflect steady adoption. Yet even loyal users balk at the stock’s risk profile. “Great product, dangerous valuation,” remarked a fintech CTO who requested anonymity. “This isn’t about functionality; it’s about financial gravity.” Cramer echoed this, noting Figma now trails only Palantir (trading at 689× earnings) as the market’s priciest stock—a dubious honor during economic uncertainty.

Can AI Hype Outlast Valuation Reality Checks?

The IPO frenzy underscores AI’s siren call for investors. Figma’s tools automate UI prototyping, slashing design cycles for developers—a compelling pitch in efficiency-obsessed markets. But recent volatility haunts the sector. Circle’s 121% June IPO surge reversed sharply when stablecoin legislation stalled, proving regulatory and valuation risks can swiftly deflate momentum. Cramer stressed Figma must become “an outlier” to sustain its premium, requiring flawless execution and accelerated growth. With Palantir’s 109% 2025 gain as both inspiration and cautionary tale, Figma’s path hinges on converting AI promise into profit—fast.

Figma’s blistering debut epitomizes 2025’s AI gold rush—where breathtaking innovation collides with perilous pricing. While its tools reshape digital creation, investors must weigh transformative potential against Cramer’s $44 billion reality check: not all that glitters is scalable. Before chasing momentum, scrutinize sustainability.

Must Know

Q: What is Figma’s core business?
A: Figma provides cloud-based AI tools for collaborative interface design, enabling teams to build websites and apps faster. Major clients include Google, Netflix, and U.S. government agencies.

Q: Why did Jim Cramer criticize the Figma IPO?
A: Cramer warned Figma trades at 53.5× sales—far above sustainable multiples—citing Circle Internet’s 29% post-IPO drop as a precedent for overhyped valuations.

Q: How does Figma’s growth rate compare to its valuation?
A: Despite a 40% annual revenue increase and $250M Q2 projections, its $44B market cap implies unrealistic long-term scaling, per analysts.

Q: What risks could impact Figma’s stock?
A: Regulatory shifts (like those affecting Circle), slower AI adoption, or failure to monetize enterprise clients could pressure its premium pricing.

Q: How does Palantir relate to Figma’s valuation?
A: Palantir trades at 689× earnings—making it the only S&P stock pricier than Figma. Both face scrutiny over AI-driven premiums.