Jim Cramer Advises Delaying Figma Purchases for Better Valuation Opportunities

Please note that this article does not constitute investment advice, and the author holds no positions in any of the stocks mentioned.

Figma, an innovative player in the AI-driven design tool sector, made headlines today with shares soaring 227% following its IPO. This surge marks yet another impressive entry into the AI IPO space in 2025. Figma’s platform enables developers to harness AI technology, streamlining the creation of user interfaces and expediting the development process. Despite this positive momentum, finance expert Jim Cramer of CNBC has expressed skepticism regarding Figma’s lofty valuation.

Caution Advised for Figma Investors: Insights from Jim Cramer

In a series of insightful posts on X, Cramer highlighted that Figma’s shares were trading at an astonishing 50 times its sales when it debuted on the New York Stock Exchange. With a trailing twelve-month revenue of $821 million, the firm’s current market valuation stands at approximately $44 billion, resulting in a staggering revenue-to-value ratio of around 53.5x. Cramer cautioned his followers, suggesting that anyone considering a market order for Figma should “pull it now”to potentially secure a better price.

Cramer further pointed out a concerning trend regarding high valuations in recent IPOs. He referenced Circle Internet Group’s recent listing, which, despite a staggering 121% surge since its debut, has since plummeted 29% from its peak. This decline was driven by investor anxiety over extreme valuations and regulatory concerns regarding stablecoin legislation.

Figma stock surges 227.86% to 108.19 USD, 5-day chart, strong upward trend visible.

Figma’s impressive client roster, which includes major corporations like Google and Netflix, as well as governmental bodies such as the IRS and the Department of Education, has fueled investor enthusiasm. The company set its IPO price at $33, slightly above expectations, and the stock’s value jumped to $85 upon trading, pushing the firm’s valuation to around $50 billion.

However, Cramer has raised concerns regarding Figma’s relatively modest growth rate, which he believes does not support its soaring share price. The company reported an annual revenue growth rate of 40% in its IPO documents, with projected second-quarter revenue ranging between $247 million and $250 million.

He acknowledged the tendency for investors to become “too excited”and pay excessive prices, but maintained that Figma remains “way too expensive”when considering its growth rate and current revenue multiplier. He noted that Figma could rank as the second most expensive stock on the market, next only to data analytics firm Palantir.

Palantir’s stock has had a remarkable year, increasing 109% year-to-date and exhibiting an unparalleled 689x price-to-earnings ratio. Cramer hopes Figma can prove to be an outlier in this concerning trend of excessive valuations, cautioning that such inflated prices could ultimately lead to financial losses for investors.

Source&Images