Figma’s Bubble and Apple’s Surprise

What a day! Apple surprised with a much better quarter than it had projected, lifting revenue in the June quarter 10%, thanks to 13% higher iPhone revenue, the best iPhone quarter in four years. Amazon, meanwhile, reported the best growth for its online stores in three years. (See below for more on the quarterly results.) The biggest news today, though, was Figma’s bubble-like public debut, which made me wonder if some investors were trading while high on some of those (legal in New York and California) edibles.

Not only did Figma’s stock rocket 250% from its IPO price of $33 to close at $115.50—it then rose further to above $140 in after-hours trading! You could understand this breakneck enthusiasm if this was OpenAI going public. But Figma is neither an artificial intelligence developer nor a crypto firm. Instead, it’s an enterprise software firm, albeit one that’s fast-growing and profitable. As my colleague Cory Weinberg noted in our story today, Figma’s closing price is about 55 times what bankers expect the company will generate in revenue in 2026, compared with a median forward multiple of 13 for the biggest software firms.