Markets
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Claire Yubin Oh
9/4/25

Figma plunges after first earnings since IPO, as lockup for some shareholders set to expire, guidance fails to excite

Figma shares were trading as much as 16% lower in early trading on Thursday after the design software company reported Q2 results — the company’s first report since its IPO in July.

Second-quarter revenue increased 41% year over year to $249.6 million, narrowly ahead of analyst estimates of $248.7 million, and adjusted earnings came in at $0.085 per share, topping Bloomberg-compiled forecasts of $0.081.

Given Figma’s lofty valuation — at yesterday’s close, the company’s market cap was more than 32x its expected revenues for this fiscal year — guidance, which is broadly in line with consensus forecasts, may not have been enough to excite investors. The company expects third-quarter revenue to be between $263 million and $265 million, with sales for the full year between $1.021 billion and $1.025 billion.

Perhaps most importantly, however, is that the company also disclosed that certain conditions about its stock price are likely to be met this week, triggering the early release for 25% of the eligible securities owned by certain Figma employees and service providers. Per the company:

“Figma anticipates that the Early Release Condition will be satisfied following the close of market on September 4, 2025. Accordingly, pursuant to the Lock-Up Agreements, Figma expects that the Lock-Up Period will terminate with respect to the Early Release Shares, and such shares will become eligible for immediate sale in the public market, at the open of trading on September 5, 2025.”

Figma also said that, on August 30, 2025, it entered into an extended lockup agreement with holders of approximately 54.1% of the company’s outstanding shares of Class A Common Stock, with staggered releases of their stock each quarter through June 2026.

Meanwhile, Figma’s peers, like CRM software company Salesforce and design competitor Adobe, have seen shares slide over the potential threat AI poses to their businesses.

Wall Street analysts remain lukewarm about the stock, too: three of the 10 analysts tracked by Bloomberg with coverage on Figma rated the stock as a “buy,” with the remaining seven recommending it as a “hold.”

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Luke Kawa
Please clap
20h
Traders resurrected the long-dead “confidence fairy,” and it's juicing consumption despite the tariffs

It’s not the stock market versus the economy. It’s that the stock market is the economy.

2017 New York Comic Con - Day 1
markets
Luke Kawa
9/5/25

Robinhood, AppLovin, and Emcor pop on announcement of addition to S&P 500

Shares of Robinhood Markets, AppLovin, and Emcor are all rallying in post-market trading on Friday upon news that they’re being added to the S&P 500.

Shares of the brokerage popped 7.2%, the adtech company rose 7.8%, and the construction company was up a more modest 2.7% in the minutes following the announcement.

(Robinhood Markets, Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

Strategy, another stock rumored to be in the running for inclusion in the benchmark US stock index that has been passed over, sank 2.5% in postmarket trading.

Nia Warfield, Luke Kawa
9/5/25
S&P 500 falls as rate-cut optimism fizzles

The S&P 500 gave up early gains to close down 0.3%, while the Nasdaq 100 eked out a 0.1% advance and the Russell 2000 outperformed, rising 0.5%.

Brown bear on a rock
markets
Nia Warfield
9/5/25

Kenvue plunges after reports suggest RFK Jr. may try to link prenatal Tylenol use to autism

Kenvue sank 15% Friday after a WSJ report said Health and Human Services Secretary Robert F. Kennedy Jr. may attempt to link prenatal Tylenol use to autism in an upcoming government report.

Kenvue, the maker of Tylenol and formerly a division of Johnson & Johnson prior to a 2023 spin-out, pushed back, saying the science shows “no causal link” between acetaminophen use during pregnancy and autism, and pointed to FDA and medical groups that agree on the drug’s safety.

The FDA itself has found no “clear evidence” of harm but advises pregnant women to consult providers before taking OTC meds.

The report is also expected to float a folate-derived therapy as a potential treatment.

Tylenol is just the latest well-established medication to face scrutiny under Kennedy, who has already stirred controversy by reshaping vaccine policy and amplifying doubts about mRNA shots.

Kenvue shares are now down over 18% year-to-date.

RFK Jr., HHS to Link Autism to Tylenol Use in Pregnancy and Folate Deficiencies

RFK Jr.

The FDA itself has found no “clear evidence” of harm but advises pregnant women to consult providers before taking OTC meds.

The report is also expected to float a folate-derived therapy as a potential treatment.

Tylenol is just the latest well-established medication to face scrutiny under Kennedy, who has already stirred controversy by reshaping vaccine policy and amplifying doubts about mRNA shots.

Kenvue shares are now down over 18% year-to-date.

markets
Max Knoblauch
9/5/25

Lucid surges following 6 days of losses after headlines misidentify Cantor Fitzgerald’s lower split-adjusted price target as a good thing

It’s been a shortened week, but still a rough one for Lucid. Investor blowback to the luxury EV maker’s 1-for-10 reverse stock split has sent shares to all time lows this week.

After six straight days of closing lower, Wall Street appears to have decided enough is enough and is loading up on Lucid shares on Friday, sending them up 13% in recent trading. As of 2:10pm eastern, Lucid trading volumes were at more than 240% of their 30 day average.

Some of the move could be attributed to traders reading headlines that don’t take into consideration Lucid’s reverse split. Cantor Fitzgerald on Friday slapped a new price target on Lucid of $20, compared to its previous target of $3. Some news outlets (not us!) presented that as an increase. The problem: With the 1-for-10 reverse split in effect, a comparable price target would have been $30. The new $20 target is actually... a cut.

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