Why Figma ($FIG) Stock is Seriously Undervalued Right Now

In this deep dive, we break down Figma’s recent Q1 earnings report and analyze why the market's extreme fear surrounding AI disruption has created a massive valuation disconnect. Despite competing free UI tools from Google (Stitch) and Anthropic (Claude), Figma is quietly executing a massive turnaround. We cover the critical fundamentals, dissect the bull vs. bear cases, and explain why the Net Dollar Retention (NDR) metric is the final nail in the coffin for the bear thesis. What we cover in this video: The Figma Setup: From its $33 IPO to a peak of $142, down to an all-time low of $16, and the current recovery [00:31]. Q1 Earnings Scorecard: Breaking down the 46% revenue growth acceleration, adjusted EPS beat, and raised full-year guidance [03:42]. The AI Threat vs. Reality: Why free tools from Google and Anthropic aren't displacing Figma users [05:00]. The 139% NDR Moat: Proof that customers are voting with their wallets and staying deeply integrated into Figma's ecosystem [08:15]. The Bull vs. Bear Case: Examining gross margin compression from AI inference costs versus Figma's 10x sales valuation discount [08:54]. Wall Street's Lagging Indicators: Why analysts are cutting price targets on a blowout report and the structural "career risk" behind their hold ratings [13:13]. My Entry Strategy: Finding the ideal price targets and treating this as an asymmetric bet [13:55].