On June 25, Figma declined 7.24% in regular trading, trading at $17.06 per share, with turnover of $93.96 million.

On the news front, RBC Capital Markets significantly cut its price target on Figma from $28 to $22, maintaining a Sector Perform rating. The downgrade reflects persistent concerns over intensifying competition in the design tools space and pressure on gross margins stemming from AI-related costs. According to FactSet, the analyst consensus rating on Figma remains overweight with an average price target of $33.13, though RBC's revised target sits well below that consensus.

The decline was compounded by broad weakness across the Application Software sector. Among sector peers, Strategy fell 7.74%, AppLovin dropped 6.56%, Palantir declined 5.61%, IREN slid 5.31%, and Salesforce lost 1.01%.

Notably, Figma had risen over 9% on June 18 after Citigroup initiated coverage at Buy with a $36 target. However, the stock has since given back those gains as mixed analyst sentiment and sector headwinds persist despite a strong Q1 earnings beat in May showing 46% year-over-year revenue growth.

(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.)