On June 5, Figma fell 5.02% in regular trading, trading at $21.44/share, with trading volume of $127 million, extending its recent pullback trend.

On the news front, the application software sector continued to weaken collectively for multiple consecutive sessions, with broad-based selling pressure across the sector. Among sector constituents, IREN Ltd fell 11.85%, Circle Internet Corp. dropped 9.31%, Strategy declined 8.22%, and Palantir Technologies slid 2.82%, with clear signs of institutional profit-taking.

Figma had previously rallied sharply over consecutive sessions, driven by multiple tailwinds including activist investor Findell Capital's intervention urging the board to reassess its partnership with Anthropic, AI application sector fund rotation from upstream hardware to application-layer stocks, and strong Q1 earnings showing 46% year-over-year revenue growth with EPS beating expectations significantly. The substantial short-term cumulative gains left the stock vulnerable to heightened selling pressure amid the broader sector correction. Mizuho analyst Daniel J. O'Regan noted that the sharp sector decline appeared driven by programmatic trading rather than a fundamental shift in the AI narrative, pointing to quantitative funds unwinding factor baskets.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)