Figma was supposed to crush Adobe stock. Instead, it’s the one getting crushed
Figma (FIG) was supposed to eat Adobe’s (ADBE) lunch after the collaborative design-software company went public this summer. However, after hitting the market with hype and early euphoria, investor enthusiasm has faded quickly.
Adobe, surprisingly, has outperformed Figma over that same window, raising new questions about who’s really getting hit hardest by AI-driven disruption.
Using a normalized price index from Figma’s IPO date in late July, data analytics platform Value Sense found that Figma’s losses (–31%) have been more than three times deeper than Adobe’s (–10%) over the same period. Both stocks are down when indexed to 0% at the starting date, but Figma’s decline has been far steeper.
Adobe vs Figma is crazy!
undefined Value Sense (@ValueSense_io) November 20, 2025
Price Performance since Figma IPO:
- $ADBE -10%
- $FIG -31%
Who is getting killed by AI? pic.twitter.com/xFzJKTt2Qa
Despite briefly surging to nearly $120, far above its $33 IPO price, Figma has now given up its entire post-IPO rally and is trading back near those early levels — effectively a full round trip.
The data challenges the widely held narrative that Adobe was the one getting “killed by AI.” That narrative has weighed heavily on its share price this year, even though the company has been consistently delivering revenue growth.
Adobe: By the numbers
Adobe is coming off a strong fiscal third quarter, with annualized recurring revenue climbing past $5 billion. The company posted record quarterly revenue of $5.99 billion, an 11% year-over-year increase, reflecting steady demand across its Creative Cloud and Document Cloud businesses.
GAAP operating income came in at $1.27 billion, while cash flow from operations reached $2.2 billion, underscoring Adobe’s ability to convert revenue into solid profitability and cash generation.
Adobe now counts more than 37 million paid Creative Cloud subscribers, though the figure varies slightly from quarter to quarter as it adjusts for enterprise, student, and promotional cohorts.
Yet despite the strong fundamentals, investors have largely turned away from the stock this year, opting instead to chase shinier AI-centric narratives in the visual-creation space, with Figma being a prime example.
Adobe stock continues to suffer
Despite solid business drivers, Adobe’s stock has been a persistent underperformer this year, with losses accelerating amid the market’s latest sell-off.
ADBE shares are down 9% over the past month and nearly 30% year-to-date, with the stock falling a bruising 37% over the past 12 months.
Even the company’s aggressive share-repurchase strategy has done little to stabilize sentiment. As InvestorsObserver reported in August, Adobe repurchased stock equivalent to roughly 8.3% of its market capitalization, utilizing its sizable cash reserves to boost shareholder value.
So far, the buybacks have not been enough to offset the pressure from slowing investor appetite and AI-driven competitive fears.