What is an IPO and why does Figma's matter?

An IPO (Initial Public Offering) is when a private company first offers shares to the public on a stock exchange. Figma's $1.5 billion IPO is significant because it tests investor appetite for high-growth tech companies after a slow period for tech offerings. As a leading cloud-based design platform, Figma's success could encourage other tech companies to go public and boost valuations across the collaborative software sector.

What are SaaS companies and why are they included in this theme?

SaaS (Software-as-a-Service) companies deliver applications over the internet on a subscription basis rather than requiring users to buy and install software. Companies in this theme like Atlassian, Monday.com, and HubSpot operate on this model. They're included because they follow the same business approach as Figma, focusing on cloud-based collaboration tools that benefit from digital transformation trends and remote work adoption.

Why might Adobe be affected by Figma's IPO?

Adobe, as Figma's primary competitor in the design software space, will face increased competitive pressure once Figma becomes a public company with new capital to fund growth. After Adobe's attempted $20 billion acquisition of Figma was blocked by regulators, both companies will now compete directly in the market. Investors will closely watch how Adobe responds with innovation in its own creative and collaborative software suites.

What does "Market Cap" mean in the stock data?

Market Cap (short for Market Capitalization) represents the total value of a company's outstanding shares. It's calculated by multiplying the current share price by the total number of shares. Market Cap helps you understand a company's size - larger caps (like Adobe) typically offer more stability while smaller caps (like CS DISCO) might offer higher growth potential but with increased risk. For collaborative tech companies, market cap also indicates their relative position and influence in the industry.

What is "Potential Profit %" in the stock listings?

"Potential Profit %" represents the estimated percentage gain a stock might achieve based on analyst price targets and market projections. It's an indicator of how much upside analysts believe the stock has from current trading levels. For growing tech companies like those in this collection, these projections often consider factors like revenue growth rates, market expansion, and competitive positioning. Remember that these are projections, not guarantees, and actual performance may differ.

15 handpicked stocks

The Figma Effect: Investing in Collaborative Tech

Figma's upcoming IPO is creating waves in the tech industry. This collection features companies positioned to benefit from growing demand for digital collaboration tools and a revitalized tech IPO landscape, carefully selected by our expert analysts.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 2