FIG Stock Has Lost More Than Half Its Value This Year — Citi Says It Could Still Double

• Citi’s bullish call on Figma centers on the company’s AI business.
• The firm said its industry checks revealed strong demand for the company's AI-powered design tools, with customers both upgrading user seats and increasing AI credit consumption.
• Citi believes those trends could provide "significant upside" to current Wall Street forecasts as AI-related revenue becomes a larger contributor to growth.

Shares of Figma Inc. (FIG) are on track to snap an 11-session losing streak after analysts at Citi expressed optimism about the company’s prospects.

According to TheFly, Citi analysts initiated coverage of Figma with a ‘Buy’ rating and a price target of $36, implying a 100% upside from the stock’s closing price on Tuesday.

Figma shares were up more than 3% in Wednesday’s pre-market trade. FIG was among the top trending tickers on Stocktwits at the time of writing.

Why Citi Is Bullish On FIG

Citi’s bullish call on Figma is centered around the company’s AI business.

Citi said its industry checks revealed strong demand for the company's AI-powered design tools, with customers both upgrading user seats and increasing AI credit consumption.

The firm believes those trends could provide "significant upside" to current Wall Street forecasts as AI-related revenue becomes a larger contributor to growth.

What Prompted Citi’s Bullish Outlook On FIG

Citi’s bullish outlook on Figma comes nearly a month after the collaborative design platform launched an agent, making the platform legible to AI models.

The company said the feature acts as a dedicated design assistant that works directly within a team's existing Figma file. Unlike the MCP server, the agent is built into the canvas itself, allowing users to generate and edit designs without switching contexts or completing additional setup.

Users can start a prompt from any design layer, initiate parallel prompts to try multiple ideas simultaneously, and make edits and iterate while the Figma agent does its own iterations.

Figma also reported its first-quarter (Q1) results last month, beating Wall Street expectations. The company reported earnings per share (EPS) of $0.1 on revenue of $334 million, while Wall Street expected an EPS of $0.06 on revenue of $316 million, according to Fiscal.ai data.

What Do Retail Investors Think Of FIG?

Retail sentiment on Stocktwits around Figma trended in the ‘bullish’ territory, while message volumes were at ‘high’ levels.

FIG stock is down 52% year-to-date and 79% over the past 12 months. The ARK Innovation ETF (ARKK) is up 22% over the past 12 months, while the Vanguard Total Stock Market Index Fund ETF (VTI) is up 25%.

The ARK Next Generation Internet ETF (ARKW) is up 7% during this period, while the Vanguard Small-Cap Value Index Fund ETF (VBR) is up 26% during this period.

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