On May 20, Figma fell 5.16% in regular trading, trading at approximately $22.22/share, with trading volume of $76.03 million. The decline came after the stock had rallied over 30% between May 15 and May 19 following a strong Q1 earnings beat.

On the news front, multiple investment banks lowered their price targets on Figma despite acknowledging its strong quarterly results. Morgan Stanley cut its target from $44 to $38 while maintaining an equal-weight rating, and JPMorgan reduced its target from $45 to $42. While Q1 revenue surged 46% year-over-year to $333.4 million and adjusted EPS of $0.10 significantly exceeded the $0.06 consensus, profit-taking pressure emerged after the sharp post-earnings rally. The broader application software sector also traded lower on the day, with Intuit down 3.39% and Salesforce down 1.41%, adding sector-wide headwinds to the pullback.

(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.)