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Recent IPO Figma (FIG) continues to rally sharply higher after its collaborative design platform was spotlighted by OpenAI CEO Sam Altman during the company's "ChatGPT Inside" developer event yesterday. Shares have now surged more than 30% since the event, though the stock still remains well below post-IPO highs.

• The new Figma app in ChatGPT, featured on Figma's blog and at OpenAI's event, lets users convert brainstorming sessions or uploaded sketches into FigJam diagrams like flowcharts and wireframes, directly within ChatGPT.
• For Figma, the integrated app provides visibility to ChatGPT's massive user base and underscores the strength of its flagship design platform, with room to expand future AI capabilities as its beta tools like Make and Buzz mature.
• ChatGPT can also suggest the Figma app when diagramming would be useful, further boosting visibility.
• OpenAI said it will open app submissions next year, paving the way for new monetization channels, potentially benefiting early entrants like Figma.

Briefing.com Analyst Insight

While the mention at OpenAI's event has sparked enthusiasm among investors, there are still some concerns. The company reported Q2 results in early September, with Q3 revenue guidance of $263-265 mln implying a slowdown to about 33% growth from 41% in Q2. FY25 guidance of $1.021-1.025 merely met analyst forecasts, which failed to satisfy high-growth expectations. Following the strong run, its forward P/S ratio is even more lofty, north of 27x. That said, the event brings more enthusiasm to the name and could open new opportunities as AI-assisted design adoption accelerates.