Key Highlights

• Figma’s shares plummeted approximately 8% on Wednesday following Google’s unveiling of significant enhancements to its Stitch AI design tool
• Google introduced “vibe designing” functionality — an innovative prompt-driven method for creating user interfaces and generating frontend code
• The Stitch platform now connects seamlessly with Google Workspace applications including Docs and Drive, appealing to organizations already embedded in Google’s suite
• Figma disclosed $1.06B in fiscal 2025 revenue, representing a 41% year-over-year increase, though net losses expanded to $1.25B
• FIG shares are currently down approximately 80% from their post-IPO peak of $142.92

Figma has endured a challenging period, and Wednesday’s trading session offered no relief. Shares declined roughly 8% following Google’s announcement of substantial upgrades to Stitch, its artificial intelligence-driven user interface design platform. By Thursday midday in New York, FIG continued trading lower by approximately 5%.

Figma, Inc., FIG

The market reaction was swift. Investors didn’t require detailed feature-by-feature analyses — the mere involvement of Google proved sufficient to trigger selling pressure.

While Stitch had already registered on Figma’s competitive landscape, Wednesday’s reveal brought the threat into clearer view. Google Labs centered its announcement around a fresh approach dubbed “vibe designing” — fundamentally leveraging conversational language prompts to create refined UI layouts and frontend code, bypassing traditional wireframing stages.

“When ‘vibe designing’ in Stitch, you can explore many ideas quickly leading to a higher quality outcome,” Google stated in its release. The platform now supports voice commands as well, enabling users to request instant modifications such as alternative color schemes or revised navigation elements.

The updated Stitch also introduced templates spanning multiple sectors including SaaS dashboards, healthcare applications, entertainment platforms, and utility services — sectors that align directly with Figma’s core customer segments.

The Significance of Google’s Strategic Play

The worry extends beyond feature parity. The underlying infrastructure presents the larger challenge. Stitch’s integration with Google Docs, Drive, and the broader Workspace environment — platforms already woven into the daily workflows of countless organizations — substantially lowers migration barriers for companies contemplating alternatives to Figma.

Google’s proven ability to rapidly scale products adds weight to the competitive threat. This historical capability gives market participants legitimate grounds for concern, regardless of Stitch’s current maturity level.

Figma CEO Dylan Field commented on market fluctuations during a February CNBC appearance, noting: “I think volatility is probably good at strengthening companies long-term.”

Nvidia CEO Jensen Huang challenged the prevailing narrative suggesting AI platforms will entirely displace established software firms. “It is the most illogical thing in the world and time will prove itself,” Huang remarked during a Cisco AI conference.

Analyzing Figma’s Financial Performance

Figma’s financial results present a complex picture. The company achieved $1.06 billion in revenue for fiscal 2025, marking a 41% year-over-year climb. Net dollar retention reached 136%, indicating existing customers increased their platform spending by 36% compared to the previous year.

However, losses are accelerating. Net losses totaled $1.25 billion in 2025, climbing from $732 million in 2024. Escalating stock-based compensation and operational expenditures are widening this deficit.

Shares initially surged following the Feb. 18 earnings disclosure, buoyed by projections of 38% revenue expansion in Q1 2026. That momentum proved short-lived.

FIG currently trades near $24.50 — substantially beneath its IPO price of $33 per share, and nearly 80% below its post-IPO zenith of $142.92. The 52-week trading range spans from $19.85 to $142.92.

With a price-to-sales multiple hovering around 13, the valuation remains elevated but increasingly reasonable compared to comparable high-growth SaaS companies demonstrating similar revenue trajectories.

The stock has yet to retest its early February nadir, which certain market observers interpret as potential support establishing itself.

Bitcoin (BTC) may go as low as $55,000 in 2026 as the market lacks bullish catalysts amid macroeconomic uncertainties. 

Key takeaways:

• BTC price has a 65%-71% chance of dropping below $55,000 before Dec. 31, according to prediction markets.

• Bettors don’t expect Strategy to sell its BTC holdings in 2026. 

• Whale selling and negative ETFs flows add to Bitcoin’s sell-side pressure. 

Prediction markets see BTC bear market continuing

The majority of traders on Polymarket and Kalshi expect Bitcoin to resume its downtrend throughout 2026, with targets as low as $40,000. 

Related: Bitcoin tests old 2021 top as gold falls to six-week lows under $4.7K

As of Thursday, Polymarket bettors are pricing in about 71% odds of BTC dropping below $55,000 before Dec. 31, a 13% increase from the previous day.

Traders set 59% odds of BTC crossing below the $50,000 psychological level and a 46% chance that it goes as low as $45,000 before the end of the year.

The lower price target forecasts for BTC mimic those elsewhere. On fellow prediction site Kalshi, traders set 71% odds of Bitcoin dropping below $60,000, with a 65% chance that it drops below $55,000. The lowest price target on Kalshi is $40,000, with a 31% possibility that BTC drops to this level before Dec. 31.

Bitcoin’s low for 2026 sits at $59,940, reached on Feb. 6, and the last time the BTC/USD pair traded below $55,000 was in February 2024.

As Cointelegraph reported, some analysts believe that the long-term BTC price downtrend is still in play, warning that the rebound to $76,000 was a bull trap. 

Will Strategy sell Bitcoin in 2026?

Bitcoin’s recent drop to $69,000 saw it slide below Strategy’s average BTC cost price, which is $75,696 at the time of writing.

But despite the expected drawdown in price, Polymarket odds for Strategy selling Bitcoin in 2026 remain below 15%, while expectations for routine buys remain elevated.

Polymarket traders still see routine Strategy purchases throughout the year as a high-probability event, with a 96% chance of it holding over 800,000 BTC by Dec. 31. 

Last week, Strategy expanded its Bitcoin treasury to 761,000 BTC after buying 22,337 coins for roughly $1.6 billion.

Bitcoin ETF flows tread water

Meanwhile, the US spot Bitcoin exchange-traded funds (ETFs) returned to net negative flows on Wednesday.

These were driven mostly by outflows from the Fidelity Wise Origin Bitcoin Fund (FBTC), data from investment firm Farside shows.

As Cointelegraph reported, the largest ETF offering from asset manager BlackRock saw $34 million in outflows as investor sentiment returned to “extreme fear.”