MarketMoodz
Figma stock falls 11% after Google's Stitch beta release
Figma shares fell roughly 11% over two days after Google released Stitch, an AI-powered design tool in beta. CNBC framed the move as part of a broader cloud-software rout, with investors weighing AI disruption against Figma's growth prospects.
Key Takeaways
- Figma's stock declined about 11% over two days, with an 8% drop on Wednesday followed by a 3% drop on Thursday.
- Stitch is Google's AI-powered design tool in beta; pricing is not disclosed and Google did not commit to future availability.
- The slide occurred amid a broader cloud software selloff and competitive pressure from Google, Canva, and Adobe.
- In October 2025, Google Cloud and Figma expanded their partnership to integrate more generative AI into the Figma platform, including the Make tool using AI models from Anthropic and Google.
People Involved
- Dylan FieldCEO, Figma
Entities Involved
- Figma, Inc. (FIG)Design software platform
- Google LLC (GOOG)Developer of Stitch and AI tools; Google Cloud parent
- AnthropicAI partner for Make tool's models
- Google CloudGoogle's cloud division; partner in expanded AI integration
- StitchAI-powered design tool product (beta)
- Adobe Inc. (ADBE)Potential competitor/acquirer mentioned
MarketMoodz Analysis
Investors are calibrating the pace and profitability of AI-enabled design tools. Stitch's beta status and undisclosed pricing add execution risk to Google's bets in design tooling, while Figma faces ongoing price and retention pressure as customers weigh AI-powered workflows against incumbents and emerging ecosystems.
Historically, AI features have become a battleground among design platforms, with Canva, Adobe, and Google expanding capabilities in tandem. CNBC notes a previous push to expand Figma's use of Google's AI services, and an Oct 2025 tie-up with Google Cloud to deepen generative AI inside the platform—using Make and models from Anthropic and Google. Watch for enterprise adoption signals, pricing discipline, and any regulatory or competitive moves that could tilt Figma's ARR trajectory.
Source: Original Article