Figma is eating AI's lunch rather than being destroyed by it, yet trades at only about 10x sales in the $20s. Q1 revenue of $333M beat, growth accelerated to 46% for a second straight quarter, net dollar retention hit 139%, its highest in two years, paid customers rose 54% and guidance was raised by $55M. The market is also ignoring that Figma is itself an AI tool. The math points to $60 a share, a $30-32B market cap or even $50B. x.com  x.com 

Figma is a higher-beta way to play a recovery in hated software, with better management, product and growth than peers and customers who love it. Microsoft is the TSMC of software, but within design Figma offers more beta. If Adobe works, it is because design-disruption fears have subsided, and Figma catches a bid in that case. x.com 

Figma's fair value is a $3-5bn market cap, or under $9 a share. That valuation target answers @DivinelyLevered's question on what fair value underpins the short, set apart from the AI-cannibalization angle. x.com 

Figma is a $40 stock trading at $23, a deep discount to its value. x.com 

Figma is monetizing AI tokens rather than being eaten by them, and could out-execute Adobe and gain share before AI reaches it. Q1 revenue rose 46% to $333M with 139% net dollar retention. About 60% of $100K+ customers use Figma Make weekly, and after AI credit limits went live, 75% of users who had exceeded them kept using credits in April, with over 95% still active. With $1.4B of ARR against Adobe's $19B in digital media, Figma has room to take share and use AI to deepen stickiness. x.com  … Show more

Anthropic's Claude Design, which makes prototypes, slides and one-pagers by talking to Claude, spells trouble for Figma. The launch drew 20 million views in seven hours, and Claude keeps crushing these product releases. x.com 

Figma has become the control layer for modern product development, with sticky retention and network effects giving it an extremely wide moat. New AI-native tools such as Figma Make, its MCP server and Figma Weave extend it beyond designers to product managers, researchers and developers, and hybrid seat-plus-consumption billing shows monetization upside. Q1 revenue rose 46%, full-year guidance was lifted to about $1.425B, and gross margins above 80% come with expanding free cash flow. x.com 

Google's Stitch is not a threat to Figma, because the two serve different users. Figma is for semi-professional designers, sitting between Adobe's products and Canva, while Stitch is for cheap DIYers. Figma users might move to Stitch in 5 to 10 years, if at all, a reply to @oreHistorian's view that Stitch would hurt Figma's growth. x.com 

Figma is still expensive and would only look attractive at Salesforce, Workday or Atlassian multiples. A post the author replies to argues the stock's failure to jump on strong numbers shows how bad sentiment is. x.com 

Figma deserves to rally sharply on its beat-and-raise report. Figma, Twilio and Atlassian, three companies at the heart of the "software is dead" argument, all beat and raised with upbeat forward commentary, suggesting AI isn't killing them. x.com