💰 5 Fact Friday: Figma Jumps 250% At IPO

OUR PARTNER: PACASO

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STOCKS
1. Figma Jumps 250% At IPO 🎨

Figma $FIG ( ▲ 6.24% ) made its public debut yesterday, and it didn’t disappoint.

The design software company priced its IPO at $33 per share, above its initial $30–$32 range, and raised about $1.2B in the process.

Then came the fireworks:

• Opened at $85, more than 150% above the IPO price

• Closed at $116, giving it a market cap of $47B

That kind of first day leaves one big question: how did we get here?

The Google Docs of Design

Figma makes browser-based design tools used by 13M monthly active users, from hobbyists to more than 95% of the Fortune 500.

It’s the go-to platform for “multi-player” design and a direct rival to Adobe’s “single-player” Photoshop. Its suite includes:

• Real-time editing (like Google Docs)

• Dev Mode for developer collaboration

• AI-powered tools, like Figma Make, which turns prompts into prototypes

From Blocked Buyout to Market Darling

Back in 2022, Adobe made a $20B bid for Figma. By 2023, regulators had killed the deal, calling it anticompetitive.

While that shut the door on a buyout, Figma pocketed a $1B breakup fee. Going public became its only real path to liquidity.

Now, less than three years later, Figma is worth nearly 2.5x Adobe’s offer, a massive vote of (over?)confidence from investors.

The IPO “Pop Tax”

Of course, such a huge one-day pop raises questions. Pricing at $50 below where shares opened, banks clearly missed the mark.

• Founders, employees, and early investors left money on the table. CEO Dylan Field alone sold 2.35M shares at $33, theoretically missing out on an extra $100M+.

• Bank clients who got IPO allocations made a killing. However, the deal was 40x oversubscribed, meaning allocations were small.

• Retail investors who bought at the open still walked away with a quick two-hour gain of 36%.

A Sign of the Times

Figma’s red-hot debut is the latest in a string of blockbuster IPOs (see Circle and CoreWeave), a sign that risk appetite is roaring back.

In the short term, these pops are exciting. In the medium term? They might be a warning sign that markets are getting frothy.

ECONOMY
2. The Accounting Noise Behind 3% GDP Growth 🤔

The U.S. economy grew at an annualized 3% in Q2, beating the 2.3% estimate and rebounding sharply from Q1’s 0.5% contraction.

On paper, that’s great! In reality? The story is a little more complicated.

Here’s what actually happened:

1. Imports tanked. GDP subtracts imports from growth. In Q1, businesses stockpiled goods (imports +38%) ahead of Trump’s tariffs, dragging that reading down. In Q2, they worked through those inventories (imports -30%) instead of buying more. That whiplash made Q1 look worse and Q2 look better than either really was.

2. Consumers kept spending. Personal consumption rose 1.4%. That’s not exactly “roaring,” but wallets are still open despite high borrowing costs.

In other words, this GDP “boom” isn’t really a boom. It’s accounting noise from inventory swings.

And here’s the kicker: that inventory drawdown supports the Fed’s fear that more price hikes could be coming. Which brings us to inflation…

Stuck in Neutral

The Fed’s favorite gauge, core PCE (which strips out food and energy), came in at 2.8% in June. The overall PCE rate was 2.6%.

That’s essentially unchanged since May of last year.

On one hand, there’s been no progress toward the Fed’s 2% goal. On the other? The 1% worth of rate cuts last fall and months of new tariffs haven’t reignited inflation either.

Enter the Fed

With inflation treading water and tariff effects likely still coming, the Fed kept rates steady Wednesday. Powell wants to keep policy restrictive until inflation finally heads lower.

But the vote wasn’t unanimous.

For the first time in over a decade, two members dissented and pushed for cuts. That split shows just how murky the economic picture has gotten.

The Big Picture

We’re looking at a slow-but-steady economy growing around 2%. No recession, no overheating, just business as usual.

In other words: nothing to panic over—but plenty to keep worrying about.

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ECONOMY
3. New Deals Emerge Ahead Of Tariff Deadline 🤝

The 90‑day tariff pause was set to expire today, prompting a flurry of last‑minute deal‑making in Washington. But yesterday evening, President Trump extended the start date on most new tariffs to August 7 and formally authorized 10% to 40% duties on nearly every trading partner.

Resolved

• European Union: The EU agreed to a 15% baseline tariff on most goods (down from a threatened 30-50%). Plus, the EU will invest $600B in the U.S. and buy $750B in American energy over three years.

• South Korea: Tariffs are set at 15% (avoiding a planned 25%), with Seoul pledging $350B in U.S. investments and $100B in energy purchases.

• Pakistan: Tariffs were reduced from a possible 29%. Pakistan secured expanded U.S. investment opportunities in oil, mining, IT, and crypto.

Unresolved

• India: Negotations have stalled. Trump imposed a 25% tariff on Indian imports and threatened additional penalties if India continues purchasing Russian oil

• Brazil: Facing a 50% tariff on imports starting Aug. 7, though aircraft, fertilizers, and some metals are exempt. Brazil’s government has vowed to retaliate.

• Mexico: Trump granted a 90-day extension for talks, keeping its tariff rate at 25% after a “very successful” call with President Claudia Sheinbaum.

• China: Beijing has until Aug. 12 to reach an agreement, with Treasury officials saying a deal is “close” but still unresolved.

• Canada: Tariffs will jump to 35% effective today, under a new order tied to anti-drug enforcement.

In The Mix

• 50% tariffs on copper products (not raw copper), which sent U.S. copper futures down 20%.

• The end of the de minimis exemption for sub-$800 shipments, often blamed for contributing to the fentanyl epidemic.

• New 40% penalty tariffs for goods deemed “transshipped” to evade duties.

What’s next? More negotiations, more headlines, and likely more market volatility.

STOCKS
4. Most Important Earnings Of The Week 🔍

Four of the Magnificent 7, which also happen to be four of the five largest U.S. companies, reported earnings this week.

Why does it matter? Together, these four giants make up 20% of the S&P 500. In other words, their results can move markets (and your portfolio, even if you just own index funds).

Meta

$META ( ▲ 2.12% ) crushed expectations with 22% revenue growth to $47.5B and earnings of $7.14 per share. The company poured $17B into data centers this quarter and still expects to spend $66-72B for the year. Management warned that expenses will climb even higher in 2026 as it keeps poaching recruiting top technical talent.

But AI isn’t just a cost center. It’s also a growth engine. Smarter algorithms are matching content to users more effectively, pushing ad prices higher and boosting engagement. Time spent on Facebook and Instagram rose 5% and 6%.

And CEO Mark Zuckerberg? He’s thinking even bigger, saying that superintelligence (AI beyond human capabilities) is “now in sight.” Investors loved it. Shares jumped 11% Thursday.

Microsoft

$MSFT ( ▲ 0.59% ) just keeps printing. Revenue grew 18%, powered by a 39% surge in Azure (cloud), which now brings in over $75B annually. Capex was a hefty $24B this quarter and is set to smash records at $30B next quarter as AI demand keeps accelerating.

The company even briefly crossed a $4T valuation, joining Nvidia in that exclusive club. Management said it’s renegotiating its OpenAI deal while doubling down on building its own models. Shares climbed 4% Thursday.

Apple

$AAPL ( ▲ 1.27% ) beat expectations with $94B in revenue and earnings of $1.57 per share. iPhone sales came in hot at $44B, while iPads and Wearables slipped. Services revenue keeps chugging along, now at $27.4B.

But there are a few clouds brewing overhead. Google’s antitrust case could jeopardize a $20B revenue stream for Apple. President Trump has threatened a 25% tariff on iPhones unless Apple moves production to America. Plus, the company continues to lag in the AI race.

Despite the concerns, shares rose 2% after the report.

Amazon

$AMZN ( ▲ 3.1% ) posted $167.7B in revenue and earnings of $1.68 per share, beating expectations. Retail sales were strong at $61.4B thanks to resilient consumer demand.

AWS revenue came in at $30.8B, falling short of the growth seen in Google and Microsoft’s cloud segments. Althought management raised Q3 revenue forecasts, shares fell 6% after the report.

STOCKS
5. Guess That Stock 🕵️‍♂️

This company made one of the most talked-about drugs of the decade, but a brutal earnings warning just sent its stock into freefall.

Can you guess the stock?

1. It created Ozempic and Wegovy, the blockbuster diabetes and weight-loss drugs that once made it Europe’s most valuable company.

2. It also produces half the world’s insulin supply.

3. At its peak, its market cap crossed $600B. That made the Danish company bigger than its home country’s GDP.

4. The 100-year-old company now faces fierce competition from Eli Lilly’s Zepbound and a flood of compounded copycat drugs.

5. On Tuesday, it slashed its 2025 sales outlook, sending shares plunging 22%. The stock is now down nearly 70% from its peak last June.

Got a guess? Tap here for the answer → 

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