The design software program firm’s inventory is on the transfer. Here is why.
Shares of Figma (FIG 16.83%) jumped on Wednesday, ending the day up 17.4%. The transfer got here because the S&P 500 (^GSPC 0.58%) gained 0.6%, and the Nasdaq Composite (^IXIC 1.12%) gained 1.1%.
Figma, a man-made intelligence (AI)-focused design platform, is seeing its shares proceed to achieve after OpenAI chief Sam Altman took to the stage earlier within the week on the firm’s DevDay convention to debate a brand new ChatGPT integration with Figma.
Figma’s ChatGPT integration
Altman defined the combination on Monday, saying that customers will “be capable of discover an app by asking for it by identify. For instance, you possibly can sketch out a product circulation for ChatGPT after which say, Figma, flip this sketch right into a workable diagram. The Figma app will take over, reply, and full the motion.”
Picture supply: Getty Photographs.
Naming Figma straight despatched shares hovering on hopes that Figma might massively increase its person base — OpenAI says that about 800 million folks use ChatGPT right now. Traders are optimistic about what this might imply for the connection between ChatGPT and different software program platforms, as many concern ChatGPT’s progress will cannibalize the usage of different platforms. The momentum from Monday carried into Tuesday and Wednesday buying and selling.
Regardless of what could possibly be a mutually useful relationship with OpenAI, I feel Figma’s valuation is stretched, and I might keep away from the inventory.
Johnny Rice has no place in any of the shares talked about. The Motley Idiot has no place in any of the shares talked about. The Motley Idiot has a disclosure coverage.
