Figma Inc. shares fell sharply on Tuesday, January 20. The decline occurred amid a broader investor rotation out of high-growth software stocks. Concerns over new trade tensions with Europe reportedly triggered the sell-off. The stock now trades near its 52-week low.
Investor caution stems from the upcoming IPO lock-up expiration on January 27th. This event makes nearly 37 million shares eligible for trading by insiders and major shareholders. Reports highlight considerable insider selling in the months preceding the expiration, potentially increasing pressure on the stock.