Figma's IPO: The Background Behind a 1.4 Trillion Won Loss in Just One Day

Figma Inc. (NYSE: FIG) shares recently plunged 10% on the New York Stock Exchange, closing at $27.07 and extending their short-term losses. Trading volume jumped to 6.71 million shares, and the company’s market capitalization fell to about $11.2 billion—wiping out over $1 billion (roughly ₩1.4 trillion) in value in a single day.

With the January 27 lock-up expiration fast approaching, concerns over insider selling have grown, and analysts have adopted a more conservative stance, cutting their average price target by about 14%. Following the steep drop since the beginning of the year, some observers now consider Figma technically oversold. The company is set to report its fourth-quarter and full-year 2025 results on February 18.

Figma, a software firm that provides a browser-based collaborative design platform, debuted on the NYSE in July 2025 as a highly anticipated IPO, with its shares briefly trading at multiples of the offering price. In 2022, Adobe’s proposed $20 billion acquisition of Figma fell through due to regulatory concerns, and market expectations around Figma’s valuation and share price continue to be recalibrated.