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Shares of leading software companies have declined due to concerns that AI may threaten their businesses. Analysts Louis Gerard and Brett Ashcroft Green discussed the implications of AI on the sector. Gerard noted that AI lowers barriers to entry, benefiting smaller teams and potentially disrupting established firms like Adobe and Figma. In contrast, companies like Microsoft and ServiceNow may thrive by leveraging AI. Green emphasized that while AI can create custom software, many companies may prefer established brands for reliability and security. He believes AI will ultimately enhance trusted software rather than replace it.

- Shares of major software companies faced significant declines due to concerns over AI's potential to undermine their businesses.  
- Analysts Louis Gerard and Brett Ashcroft Green from Seeking Alpha shared insights on the threat that AI poses to the sector.  
- Gerard emphasized that there is a structural threat to these companies stemming from the rise of AI technologies.

Adobe

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Figma

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SA asks: How much of a threat is AI to the software sector?

03:44 AM EST, 02/05/2026 (MT Newswires) -- Kris Rasmussen, Chief Technology Officer, on February 02, 2026, sold 74,305 shares in Figma ( FIG ) for $1,847,397. Following the Form 4 filing with the SEC, Rasmussen has control over a total of 10,624,343 Class A common shares of the company, with 10,624,343 shares held directly.SEC Filing: MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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Figma Insider Sold Shares Worth $1,847,397, According to a Recent SEC Filing

Peregrine Asset Advisers Inc. has invested approximately $3.79 million in Figma, Inc. (NYSE:FIG) by acquiring 72,975 shares during the 3rd quarter. Figma now constitutes 1.1% of Peregrine's investment portfolio. Other investors, including Rit Capital Partners and Baillie Gifford, have also increased their stakes in Figma. The company's stock has seen a significant drop, currently trading at $21.43, with a market cap of $8.91 billion. Figma reported earnings of $0.10 per share, exceeding analysts' expectations, despite a negative net margin. Analysts have mixed ratings on the stock, with an average target price of $47.75.

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Peregrine Asset Advisers Inc. Invests $3.79 Million in Figma, Inc. $FIG

Figma Inc (NYSE:FIG) shares fell sharply after Piper Sandler cut its price target from $70 to $35, a 50% reduction, while maintaining an Overweight rating. The stock is currently trading 32.7% below its 20-day SMA and 51.8% below its 100-day SMA, indicating a bearish trend. Figma's shares are down 12.17% at $21.08, nearing its 52-week low of $18.41. Other analysts have also lowered their targets, reflecting ongoing concerns in the software sector ahead of Figma's fourth-quarter earnings report on Feb. 18.

benzinga_article

Figma Stock Sells Off As Analyst Slashes Price Target In Half

Deep-pocketed investors are showing a bullish trend towards Figma (NYSE:FIG), with significant options activity indicating potential market movements. Recent data reveals a split sentiment among investors, with 45% bullish and 45% bearish. The projected price targets for Figma range from $12.5 to $55.0. Currently, Figma's stock is trading at $21.04, up 2.15%, with an anticipated earnings release in 14 days. Analysts have set a consensus target price of $43.75, with ratings ranging from Overweight to Hold. Options trading presents higher risks but also greater profit potential.

Behind the Scenes of Figma's Latest Options Trends

Figma's 180-day IPO lock-up period has ended, resulting in an 80% drop in share value from its peak of $143 to $22.51. This decline has left many employees, who waited years for the IPO, facing significant losses. Analysts have downgraded the stock amid market volatility and concerns over competition from AI-driven companies like Adobe and Microsoft. Despite reporting 38% revenue growth, the outlook remains bleak, with expectations of increased insider selling further impacting the stock's performance.

- The expiration of Figma Inc.'s lock-up period has resulted in its employees facing significant losses, with stock prices plummeting from a peak of $143.45 to $22.51.  
- This decline follows a series of analyst downgrades and market volatility, raising concerns about Figma's competitive position amid increasing competition from companies like Adobe and Microsoft.  
- Despite reporting 38% year-over-year revenue growth, the outlook remains challenging, and further insider selling is anticipated to pressure the stock.

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Figma Employees Watch 80% Of Wealth Vanish Behind 180-Day Lock-Up

Figma's CTO, Kris Rasmussen, sold 74,305 Class A shares on February 2, 2026, for $1,847,397 to cover tax obligations related to restricted stock units. The sales occurred in two transactions at average prices of $24.3578 and $25.2405. After the sale, Rasmussen retains ownership of 10,624,343 shares of Figma.

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Figma CTO Kris Rasmussen Sells Shares to Cover Tax Obligations

In the latest quarter, 8 analysts provided mixed ratings for Figma (NYSE:FIG), with an average 12-month price target of $49.62, down 22.99% from $64.43. Key analysts adjusted their ratings, with some lowering targets significantly. Figma's market capitalization is below industry benchmarks, and its financial performance shows a revenue growth rate of 38.03%, but challenges in profitability with a net margin of -400.12% and an ROE of -88.24%. Analysts' insights reflect their response to market conditions and company performance, guiding investors in decision-making.

Assessing Figma: Insights From 8 Financial Analysts

Dylan Field, CEO of Figma (NYSE:FIG), emphasized the company's focus on using AI to solve real problems rather than as a marketing tool. He discussed Figma's AI ambitions, including features that enhance design efficiency and the integration of design and prototyping. Field noted that while roles in product development may remain, responsibilities will blur, leading to more collaboration among team members. He also highlighted the importance of auditability in AI interactions and the need for design outputs to have a distinct point of view to stand out in a competitive landscape.

Figma Conference: CEO Dylan Field Says AI Must Solve Real Problems, Eyes Design-to-Prototype Leap

A decline doesn't always mean an automatic buy.

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Better creative tools stock: Figma vs. Adobe

Figma Inc. will announce its fourth quarter and full year 2025 financial results on February 18, 2026, after U.S. markets close. The results will be available on their Investor Relations page, and a conference call will take place at 2 p.m. PT / 5 p.m. ET the same day, with a live webcast and replay available. This announcement was generated by Public Technologies and is for informational purposes only.

Reuters

Figma Inc. to Announce Fourth Quarter and Full Year Financial Results

Wall Street Zen has downgraded Figma (NYSE:FIG) from a "hold" to a "sell" rating. The stock has seen various ratings from analysts, with a consensus rating of "hold" and a target price of $52.13. Figma's shares opened at $25.92, down 4.2%, with a market cap of $10.78 billion. The company reported a revenue increase of 38% year-over-year, but has a negative return on equity and net margin. Recent insider sales have also been noted, with significant shares sold by the CTO and CEO.

Figma (NYSE:FIG) Downgraded by Wall Street Zen to "Sell"

OpenAI

Anthropic has launched interactive apps for its Claude chatbot, enhancing workplace productivity with tools like Slack, Canva, and Figma. This feature allows users to perform tasks such as sending messages and generating charts directly within the chatbot interface. Available to Pro, Max, Team, and Enterprise subscribers, the apps utilize the Model Context Protocol, similar to OpenAI's system. The integration with Claude Cowork, an agent tool for managing complex tasks, is expected soon. Users are advised to monitor permissions closely to protect sensitive information.

Leverage Shares 2x Long FIG Daily ETF(FIGG.US)

SA asks: How much of a threat is AI to the software sector?

Figma Insider Sold Shares Worth $1,847,397, According to a Recent SEC Filing

Peregrine Asset Advisers Inc. Invests $3.79 Million in Figma, Inc. $FIG

Figma Stock Sells Off As Analyst Slashes Price Target In Half

Behind the Scenes of Figma's Latest Options Trends