By Jennifer Elias
Publication Date: 2026-03-19 19:01:00
Dylan Field, co-founder and CEO of Figma, appears on the floor of the New York Stock Exchange on July 31, 2025.
Michael Nagle | Bloomberg | Getty Images
Figma’s downward slide this year, driven by concerns about artificial intelligence, intensified over the past two days after Google introduced an AI-powered design product.
On Tuesday, Google released a new product in beta called Stitch, which lets users enter a prompt to create a design for their projects. Google claims the feature is a “design agent” that can give real-time design critiques and that responds to voice.
Google isn’t charging for Stitch, nor does it make promises about the availability of the service. But with Wall Street on edge regarding all potential threats from AI, Figma is getting punished.
Shares of Figma dropped 8% on Wednesday, followed by a decline of more than 4% on Thursday. The stock is down about 35% this year, tumbling alongside a broader slide in the software industry.
A Figma representative declined…
/cdn.vox-cdn.com/uploads/chorus_asset/file/25831033/Screenshot_2025_01_14_at_10.02.26_AM.png?resize=1670,876&ssl=1 "Today I learned about the Google Geocities Easter egg.")
