Figma's AI-Driven Spending Squeeze Hits Software Stocks
Figma's latest quarterly results have sent shockwaves through the software sector, with shares of Adobe and Salesforce declining in response to the company's warning about surging AI costs.
The stock prices of several major players, including CRM, INTU, ADBE, and ServiceNow, fell as Figma revealed that its investments in artificial intelligence functionality had led to a significant increase in research and development expenses, nearly doubling them in the last quarter.
Figma's shares plummeted 16% despite exceeding analysts' revenue estimates for the June quarter with $370.1 million in sales, up 48% from the same period last year.
The company attributed its increased spending to investments in AI-driven product enhancements aimed at driving user growth and engagement.