One minute, you’re Wall Street’s darling of design, and the next, your better half is gone. Just five weeks after a blockbuster IPO that had investors dreaming of another CoreWeaveCRWV

or CircleCRCL

grand slam, Figma’sFIG

honeymoon ended fast. Despite a 250% pop on launch day,FIG

now trades nearly 53% beneath its original price, proving how quickly market fame can fade.

• The design software company’s first-ever earnings posted 41% revenue growth from last year — but investors weren’t impressed as the stock plunged by 20% yesterday.
• Markets can’t decide whether AI poses a tailwind or existential risk for Figma — with CEO Dylan Field touting “significant investments” in the technology to grow addressable customers.

Design dilemma: Investors may still be scratching their heads over Figma’s post-IPO dip, but analysts seem convinced that AdobeADBE

— the company that once tried and failed to buy Figma — is in even deeper trouble. With Big Tech unleashing powerful (and often free) generative AI tools, Adobe’s competitive moat has rapidly shrunk, prompting some analysts to slap the stock with Sell ratings. For now, Figma and Adobe might want to spend more time designing a survival plan.