Figma Shares Plunge 20% Post-Earnings, Yet Ark Invest Sees Opportunity in Design Innovation

Following Figma’s latest earnings announcement, the design platform’s stock experienced a sharp 20% decline as investors digested the results. However, Cathie Wood’s Ark Invest has taken a contrarian position, recently disclosing a new stake in the company—signaling confidence in Figma’s long-term potential despite short-term market weakness.

The purchase underscores an interesting divergence in how different market participants view the company. While broader sentiment turned bearish immediately after earnings, Ark Invest’s decision to accumulate shares suggests the firm sees value that markets may have overlooked in their initial reaction.

Notably, Ark Invest went out of its way to clarify that its investment thesis centers on Figma’s design capabilities and product innovation, explicitly distancing itself from crypto narratives. The fund emphasized that this is fundamentally a play on digital design tools and collaborative productivity software, not a bet on blockchain technology or Bitcoin-related exposure.

This move aligns with Ark Invest’s broader strategy of identifying disruptive companies during periods of volatility and skepticism. By purchasing shares at a depressed valuation following the earnings miss, Wood’s firm is betting that Figma will recover as the market eventually recognizes the value of its design and collaboration platform.

The stakes reveal how sophisticated investors like Cathie Wood are leveraging post-earnings selloffs as entry points. While retail investors may panic during sharp declines, established firms with conviction about a company’s fundamentals use such moments to build positions—a classic contrarian playbook that has defined Ark Invest’s approach.