Figma's stock price plummeted 7.10% during intraday trading on Tuesday, reflecting a significant downturn for the application software company.

The decline comes as the broader application software sector experienced significant profit-taking after multiple consecutive days of gains. The sector saw widespread selling pressure, with notable declines across major names.

Figma had previously rallied sharply, driven by activist investor Findell Capital's intervention calling for a review of the company's relationship with Anthropic, AI application sector rotation from upstream hardware to software, and strong Q1 earnings showing 46% year-over-year revenue growth. The substantial cumulative gains made the stock particularly vulnerable to selling pressure during the sector-wide correction, as investors moved to lock in profits.