Why Figma Stock Popped Today
The Motley Fool
by newsfeedback@fool.com (Jeremy Bowman)February 24, 2026
AI-Generated Deep Dive Summary
Figma stock surged today, gaining 9.2% as of 12:53 p.m. ET, driven by a $11.7 million purchase of shares by Cathie Wood’s ARK Investment Management. This move came after Figma faced significant losses yesterday alongside other software stocks following a bearish blog post from Citrini Research, which warned of potential AI-driven disruptions in the sector. Today's rebound also aligns with broader recovery trends in software stocks, with the iShares Expanded Tech-Software ETF rising 1.6% in afternoon trading.
The investment by ARK, known for its influence in the financial markets, signals confidence in Figma’s growth prospects despite concerns about AI disruption. This endorsement is particularly notable given Wood’s diminished clout compared to the peak of her popularity during the pandemic. However, her firm’s actions continue to carry weight among investors, reinforcing Figma’s position as a resilient player in the design software space.
Figma’s recent performance reflects its strong fundamentals, with revenue growing 40% year-over-year in Q4 to $303.8 million and a net dollar retention rate of 136%, indicating high customer satisfaction and increasing spending on their product. These figures suggest that Figma is well-positioned to navigate potential challenges posed by AI advancements, which currently show no signs of disrupting the design software sector.
Investors are now closely watching whether Figma can sustain
Verticals
financeinvesting
Originally published on The Motley Fool on 2/24/2026