Figma's stock plummeted 6.15% during the intraday session, experiencing a significant pullback.

The sharp decline followed a period of strong performance, where the stock had rallied over 30% after the company reported better-than-expected first-quarter results. The reversal was triggered by multiple investment banks, including Morgan Stanley and JPMorgan, lowering their price targets on the stock, which prompted profit-taking from investors.

Broader weakness in the application software sector also contributed to the downward pressure during the trading session.