Figma's stock has been getting hammered on concerns about AI, and Google's new design product is adding to that anxiety.
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Figma’s
downward slide this year, driven by concerns about artificial intelligence, intensified over the past two days after Google
intoduced an AI-powered design product.
On Tuesday, Google released a new product in beta called Stitch, which lets users enter a prompt to create a design for their projects. Google claims the feature is a “design agent” that can give real-time design critiques, and that responds to voice.
The design software company maintained its gross margin even as more people adopted the Figma Make artificial intelligence tool.
Figma shares plummeted after the design software vendor reported earnings for the first time as a public company.
Figma's revenue grew 40% year over year to $303.8 million during the period.
Figma stock jumps as first-quarter revenue surges 46% on AI monetization traction - SiliconANGLE
After more than tripling in its debut last week, Figma gave up some of its gains on Monday.
Figma has been caught in the software stock selloff that has sent names like Salesforce, ServiceNow, and Intuit plummeting.
