Figma (FIG), the recently public interface design company, saw its stock plummet 5.12% during Tuesday's trading session, continuing the volatility that has characterized its post-IPO performance. This decline comes on the heels of a dramatic 27.4% drop just days after its blockbuster initial public offering (IPO) on July 31.

The company's IPO was initially met with overwhelming enthusiasm, with the stock price skyrocketing from its $33 IPO price to as high as $125 on its first day of trading. This surge briefly valued Figma at over $60 billion, surpassing established names like Chipotle Mexican Grill and General Motors. The excitement was fueled by Figma's impressive client base, which includes 78% of Forbes 2000 companies, and its robust 48% revenue growth last year.

However, the initial exuberance appears to be cooling off as investors reassess the stock's valuation. At its peak, Figma was trading at about 53 times trailing-12-month sales, a valuation that some analysts consider steep even for a high-growth, high-margin business. The current pullback may reflect growing concerns about the sustainability of such lofty valuations, especially as the lock-up period for insider selling approaches and potential share dilution looms due to CEO Dylan Field's performance-based stock awards. As Figma's stock continues to seek equilibrium in the public markets, investors are reminded of the often turbulent nature of high-profile tech IPOs.