Seeking Alpha initiated coverage on Figma (NYSE:FIG) with a "Sell" rating on October 16, 2025, citing the company's high valuation. Despite strong fundamentals, including 41% year-over-year revenue growth to $249.6 million, a 129% net dollar retention rate, and gross margins around 90%, the analysis argues that the stock's trading multiples are too high. The report highlights that Figma is trading at approximately 27.9 times its estimated fiscal year 2025 revenue and 22.7 times its estimated fiscal year 2026 revenue. The author suggests that these multiples reflect lofty "AI stock" expectations that are difficult to justify and recommends investors wait for the valuation to reset to the mid-teens revenue multiples before considering a position in the stock.