Figma Inc (NYSE:FIG) shares are trading lower Friday afternoon, extending this week's volatility as investors rotated out of richly valued tech and financial names during a broad market selloff.

The stock is among the Russell 1000's worst performers Friday, as risk assets recoiled on hotter-than-expected producer price data and mounting worries over AI-driven disruption in finance and software.

Here’s what investors need to know.

• Figma stock is among today’s weakest performers. What’s pressuring FIG stock?

Google Gemini Undercuts Figma Design Moat

Selling pressure follows Thursday's move lower after Alphabet's (NASDAQ:GOOGL) (NASDAQ:GOOG) Google introduced Nano Banana 2, a new Gemini image-generation model that delivers "Pro-grade" visuals at no cost inside the Gemini app.

The free tool competes with paid creative suites and could shift some AI-driven design workflows away from Figma's browser-based collaboration platform, stoking fears over monetization and pricing power.

Earnings Beat Highlight Figma's Expanding AI

The pullback comes despite solid fundamentals. Earlier this month, Figma reported quarterly revenue of $303.78 million, topping Wall Street estimates and growing from $216.95 million a year ago, while earnings of eight cents per share edged past expectations.

Management spotlighted new AI integrations, including "Code to Canvas," developed with Anthropic, which converts AI-generated code into editable design layouts and aims to position Figma as a bridge between rapid coding tools and human-centered design.

Broader Tech Pullback Adds Selling Pressure

Analysts remain divided after the rally that preceded this week's drop, trimming price targets but largely keeping Neutral to Overweight ratings.

For now, Figma's strong growth and AI roadmap are being overshadowed by competitive concerns around Google's free Gemini offering and a wider risk-off mood that has hammered high-beta names across the market.

Moving Averages Signal Continued Downtrend

Figma hit a 52-week high near $122 in late summer 2025 and has been in a steady downtrend since, with the stock making a series of lower highs and lows.

Since that peak, the stock has made lower highs and lows, and the 20-, 50- and 200-day moving averages have rolled over and flattened as FIG trades close to its 52-week low near $19.59.

Analysts Maintain Buy Rating Consensus

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $33.40. Recent analyst moves include:

• RBC Capital: Sector Perform (Lowers Target to $31.00) (Feb. 19)
• Stifel: Hold (Lowers Target to $30.00) (Feb. 19)
• Wells Fargo: Overweight (Lowers Target to $42.00) (Feb. 19)

Figma Shares Drop Friday

FIG Price Action: Figma shares were down 3.08% at $29.29 at the time of publication on Friday, according to Benzinga Pro data.

Image: Shutterstock

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