Figma Inc (NYSE:FIG) shares are trading higher on Tuesday as software stocks rebound, helped by a fresh call from JPMorgan strategists who say the sector may be ready to recover from recent AI‑driven volatility. Here’s what you should know.
- Figma shares are powering higher. Why is FIG stock surging?
JPMorgan's team, led by Dubravko Lakos‑Bujas, argued that the sharp selloff in software names — fueled by fears that rapid AI advances could disrupt traditional business models — has gone too far. They believe the pullback has created opportunities, especially in higher‑quality software companies, Reuters wrote.
"The market is pricing in worst‑case AI disruption scenarios that are unlikely to materialize over the next three to six months," the strategists wrote. They added that bearish sentiment, combined with solid fundamentals, tilts the risk‑reward balance toward a rebound.
The sector was rattled last week after AI developer Anthropic launched new plug‑ins for its Claude Cowork agent, reigniting concerns that fast‑moving AI tools could encroach on core software businesses.
Other Analyst Sees Opportunity Too
Morgan Stanley echoed the upbeat view, pointing to strong revenue expectations, improving earnings revisions and potential tailwinds for mega‑cap tech from a weaker dollar. "We believe the dislocation in U.S. software valuations is sentiment‑driven, not fundamental," said Katy Huberty, the firm's global director of research.
Datadog's Strong Results Add Momentum
The sector is also getting a lift from Datadog Inc's (NASDAQ:DDOG) strong fourth‑quarter earnings. The company — a cloud platform that helps companies monitor their systems in real time — reported 59 cents per share, far above expectations of 39 cents, and posted a $215 million year‑over‑year revenue increase.
Datadog also issued upbeat fiscal 2026 guidance, projecting earnings between $2.08 and $2.16 per share.
FIG Price Action: Figma shares were up 12.34% at $24.86 at the time of publication on Tuesday. The stock is near its 52-week low of $18.41, according to Benzinga Pro.
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