Figma co-founder and CEO Dylan Field appeared on the floor of the New York Stock Exchange on July 31, 2025.
Michael Nagle | Bloomberg | Getty Images
figma’s Concerns about artificial intelligence fueled a downward trend this year, which then worsened over the past two days. google We have introduced design products that utilize AI.
On Tuesday, Google released a beta version of a new product called Stitch. This allows users to enter prompts and create designs for their projects. Google claims the feature is a voice-responsive “design agent” that can critique designs in real time.
Google doesn’t charge a fee for Stitch or make any promises about the availability of the service. But with Wall Street nervous about all the potential threats posed by AI, Figma is being punished.
Figma stock fell 8% on Wednesday and more than 3% on Thursday. The stock is down about 35% this year, falling along with a broader decline in the software industry.
A representative for Figma declined to comment.
Figma went public in July, assuring investors that the company stands to benefit as more users turn to AI products for their designs. Adobe tried to acquire Figma in 2023, but regulatory hurdles ultimately scrapped the planned $20 billion deal.
Adobe stock has fallen about 4% over the past two days.
If Google releases new features for paying customers in the future, it could be an effort to take more ownership of product design workflows and keep users within its enterprise ecosystem. The company has deep pockets, large distribution, and a willingness to bundle products.
Google did not immediately respond to a request for comment.
In October, Google Cloud and Figma announced an expansion of their partnership that includes adding more of Google’s generative AI technology to Figma’s platform. The Figma Make tool allows users to type in a few words and let Anthropic and Google’s AI models come up with or change the design of their app.
—CNBC’s Jordan Novet contributed to this report.
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