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Figma is a San Francisco-based software UI design company that filed for an initial public offering (IPO) in April 2025 following the collapse of a $20 billion Adobe acquisition deal due to regulatory challenges. In its IPO filing, Figma reported revenue of $749 million for 2024 and $228 million for Q1 2025, marking a 48 percent increase from the previous year.
The company’s shares surged by 250 percent on their first trading day to reach $115.50, valuing Figma at approximately $70 billion. On the other hand, Palantir is an AI-powered Software-as-a-Service (SaaS) provider that assists companies and government agencies in analyzing vast amounts of raw data. It has two specialized platforms: Gotham for governmental agencies and Foundry for enterprises. Additionally, Palantir has developed its bespoke Artificial Intelligence Platform (AIP), integrating various Large Language Models (LLMs) within an organization’s operational structure.
Jim Cramer, a prominent figure in retail trading circles, tweeted that investors might be selling their Figma shares to support their Palantir holdings ahead of today’s earnings announcement. This suggestion assumes overlapping investments between the two companies due to their AI-based SaaS roots.
Palantir’s valuation is significantly higher; as per Bloomberg, its Price-to-Sales (P/S) ratio stands at 87.1x compared to Figma’s 56.7x as of August 1st.
Today, early trading shows Figma shares down about 20 percent, while Palantir’s shares are up just around 3 percent before the earnings release. For Palantir investors, today’s critical event will involve scrutinizing deal flow cadence, especially given the recent consolidation of U.S. Army contracts, which could lead to potential purchases worth up to $10 billion over the next decade.
📚 Reading Comprehension Quiz
What was the percentage increase in Figma's revenue from Q1 2024 to Q1 2025?
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