In its highly anticipated initial public offering (IPO), the design and user experience company Figma (FIG 224.54%) did not disappoint. After pricing an upsized offering, shares blasted over 240% around 2 p.m. ET today, before trading was halted briefly. IPOs have done incredibly well this year, particularly in the crypto and artificial intelligence space, and many view Figma as a potential AI disruptor.

A decently priced IPO that quickly got run up

Figma is essentially the Google Sheets of design, allowing designers and coders to collaborate on projects in one document with high-quality graphics. The majority of companies in the Fortune 500 use Figma for their design needs, and management thinks it will be able to add many more artificial intelligence (AI) tools into its product set on top of what it already has.

Image source: Getty Images.

Initially, Figma sought a valuation between $13.6 billion and $16.5 billion on a fully diluted basis. In the world of high valuations today, this didn't seem too crazy, considering the company's strong revenue growth and emerging profitability in recent quarters. Also, Adobe tried to buy the company for $20 billion before the deal was called off due to regulatory issues. The IPO was many times oversubscribed and shares roared out of the gate.

"I don't think we've seen a company as good as this for a while," Pitchbook Data's Derek Hernandez told MarketWatch, adding that he views the company as a "generational software-as-a-service company that has achieved a near-monopolistic hold on the product design market."

Should you buy the stock now?

At $100 per share, Figma would be valued at a roughly a $58.5 billion market cap, based on its IPO pricing shares at $33 and a $19.3 billion market cap. Figma also recently disclosed in preliminary results that it generated as high as $12 million of operating income on as much as $250 million of revenue, with revenue up 40% year over year.

Annualizing second-quarter revenue leads to $1 billion of annualized revenue, meaning the stock now trades over 58 times revenue, a huge valuation. The company is impressive, but I'd wait for better entry points before buying.