Latest news with #US-traded
Mint
35 minutes ago
- Business
- Mint
Figma stock rises 250% on $1.2 billion IPO debut, largest Day 1 pop in at least 30 years
Figma Inc.'s 250% surge in its debut session is the kind of coming-out party every startup dreams of when it goes public. The finely choreographed process for the $1.2 billion IPO, culminating in a fully diluted valuation of more than $65 billion, also puts rivals on notice that Figma's ambitions are expanding. The design and collaboration software company led by Dylan Field, who started the firm in 2012 with a friend from Brown University, soared above the $20 billion mark it would have fetched had a sale to Adobe Inc. not been scrapped in 2023. Shares of the San Francisco-based firm closed at $115.50 each on Thursday in New York, more than tripling the IPO price of $33 apiece. The trading gives Figma the largest first-day pop in at least three decades for a US-traded company raising more than $1 billion, data compiled by Bloomberg show. It also makes Field one of the world's richest people. Adobe's planned acquisition of Figma, which at the time would have been the biggest-ever takeover of a private software company, was panned by the Photoshop maker's shareholders, who sent its stock down nearly 17% the day the deal was announced. Today that deal looks like a bargain. Accounting for employee stock options and restricted stock units, including RSUs for Field, the company's fully diluted value is more than triple what Adobe had agreed to pay in cash and stock. Figma may never again be so cheap, and as it battles with Adobe and Australian startup Canva Inc. to dominate the use of artificial intelligence in creative tools, the company's soaring shares may open the door to some dealmaking of its own. Investors have handsomely rewarded Figma for its rapid growth, and the IPO's bankers made sure their enthusiasm wouldn't go unnoticed. Figma launched its listing on July 21 with its eye on a fully diluted valuation of as much as roughly $16 billion, well below the figure in the Adobe deal. That target was still positioned as a victory, coming after a tender offer last year valuing the design-focused company at $12.5 billion. Still, few market-watchers thought Field and his bankers from Morgan Stanley, Goldman Sachs Group Inc., Allen & Co. and JPMorgan Chase & Co. would stop there. The marketed range was raised on Monday to $30 to $32 a share from $25 to $28. The shares offered in Figma's IPO were ultimately more than 40 times oversubscribed, with more than half of the orders receiving no stock, Bloomberg News reported. The pacing almost perfectly mirrored Circle Internet Group Inc.'s debut in June, which similarly laddered its price and share count increases ahead of its 168% first-day pop. A key question for Figma's long-term success is whether it can become a tool used by office workers beyond designers. The company's suite of tools is seeing strong adoption by software developers, product managers, and marketers, said Andrew Reed, a partner at Sequoia Capital and a member of Figma's board. Sequoia, one of the most storied Silicon Valley venture firms, first invested in Figma in 2019. Around that time, companies were beginning to adopt Figma's product en masse, Reed said. Like many software firms, Figma charges clients based on the number of users and the kind of seat those users have. It added Dev Mode to the platform in 2023 to enable closer collaboration with developers, and has more recently incorporated AI technology into many of its own tools. This year it introduced Figma Make, an AI-based product that lets the user turn prompts into functional prototypes. The use of AI-focused software creation apps that are potential competitors to Figma, such as Lovable and Bolt, has rapidly increased this year. Weaving AI features into Figma's products is a top priority, Field said in an interview. 'We have so much room to explore how we can make great AI products and experiences.' Figma's financial metrics stand above most large-cap software companies, with growth north of 40%, a net-dollar retention rate of over 130% and high pricing power given the lack of a credible rival. - Anurag Rana and Andrew Girard, technology analysts Going public allows Figma to have a big brand moment which centers the importance of design, Field said. 'This is a time where we can create tremendous value for our community, our customers, and I think the public market is the right place to do it.' AI isn't the only fashionable technology Figma is embracing. The company's board approved a $55 million investment in a Bitcoin ETF run by Bitwise Inc. last year, and signed off in May on a $30 million investment in the cryptocurrency, its IPO filings show. The company bought 30 million of Circle's stablecoin USDC, valued at $1 each, and plans to reinvest the holdings into Bitcoin directly. Figma has also authorized the issuance of blockchain stock that could lead to selling blockchain-based tokens as a form of its shares, though it currently doesn't have specific plans to do so, according to the filings. Figma's bulldozing IPO campaign has produced a well-capitalized company whose stock can be currency in acquisitions — one of the potential uses detailed in Figma's IPO filings — and whose growing footprint in creative work could make it a fierce rival to the company that once tried to absorb it. The company mentioned just two acquisitions in its filings, the largest of which is a $35.5 million deal for Payload, an open source headless content management system. Field likely has bigger deals on his mind, based on the founder letter included in the IPO filing. In an interview with Bloomberg TV, Field reiterated the pledge he made in the IPO filing's founder letter that the company would pursue M&A at scale. 'There's so much out there which can be applicable to the company when you think of the breadth of product design and development,' he said. 'It has to be an amazing team, an amazing asset, and has to be something where we think the team is culturally consistent.' After its acquisition plans were thwarted, Adobe discontinued XD, its most direct Figma rival. Like many software companies, Adobe's current focus is adding AI features to its flagship creative products like Photoshop. Australia-based Canva's AI features are intended to speed the design process. In April, the company introduced a conversation-based AI tool, which responds to voice and text prompts to edit photos, generate slide decks and re-size designs. The soaring share price also puts into play the performance-based awards Field has, including a 10-year 'moon-shot' compensation package awarded just last month that begins to vest once the 60-day average stock price exceeds $60. The highest hurdle requires shares to top $130. Field's stake is worth $6.1 billion. He will continue to control the company with 74.1% of the voting power after the IPO through his holdings of Class B shares that have 15 votes each, the filings show. The company sold 12.47 million shares in the IPO, which priced Tuesday, while investors including Index Ventures, Greylock Partners and Kleiner Perkins sold 24.46 million shares. The shares were marketed for $30 to $32 per share, after the company increased the range earlier in the week. The company's stock trades on the New York Stock Exchange under the symbol FIG.
AU Financial Review
7 hours ago
- Business
- AU Financial Review
Figma IPO ‘smashes open' IPO market for Canva
Investors in Canva say a hugely successful public listing for its smaller rival Figma has smashed open the initial public offering market, and set the scene for its long-awaited debut. Figma shares closed up 250 per cent at $US115.50 on Thursday [Friday AEDT,] after an initial price of $US33 on the New York Stock Exchange. The trading gave Figma the largest first-day pop in at least three decades for a US-traded company raising more than $US1 billion, according to data compiled by Bloomberg.
Business Times
22-07-2025
- Automotive
- Business Times
Trump tariffs take US$1-billion bite out of GM earnings, shares fall
[BENGALURU] General Motors' (GM) second-quarter earnings took a US$1.1-billion hit from tariffs, but the automaker still beat analyst expectations for the period on Tuesday (Jul 22), supported by strong sales of its core petrol trucks and SUVs. The largest US automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by US$4 billion to US$5 billion this year. GM said it could take steps to mitigate at least 30 per cent of that impact. Shares fell 8 per cent. The automaker's revenue in the quarter ended Jun 30 fell nearly 2 per cent to about US$47 billion from a year ago. Its quarterly adjusted earnings per share fell to US$2.53 compared with US$3.06 a year earlier. Analysts on average expected adjusted profit of US$2.44 per share, according to data compiled by LSEG. Its adjusted earnings before interest and taxes fell 32 per cent to US$3 billion. GM was among corporations that revised annual guidance due to the impact from US President Donald Trump's tariffs, lowering it to an annual adjusted core profit of between US$10 billion and US$12.5 billion. The company on Tuesday stood by that forecast. CFRA Research analyst Garrett Nelson wrote in a Tuesday morning note that one of the reasons shares dropped was because investors were disappointed the automaker did not raise guidance. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Beyond tariffs, GM's underlying business in the quarter was solid. Sales in the US market, its main source of profit, rose 7 per cent, while the company continued to command strong pricing on its pickup trucks and SUVs. GM swung back to a small profit in China, after losing money there a year earlier. Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. The automaker is so far keeping pricing consistent and absorbing added tariff costs rather than passing them on to customers. Jeep-maker Stellantis on Monday warned that tariffs would significantly affect results in the second half of 2025, and said tariffs cost it about 300 million euros in the first half of the year. Shares of Ford Motor fell about 1 per cent on Tuesday, and US-traded shares of Stellantis edged up less than 1 per cent. GM took several steps in recent months to bolster its combustion-engine operations through increased investment in its US factory base, calling into question its goal of ending the production of petrol-powered cars and trucks by 2035. 'Despite slower electric vehicle (EV) industry growth, we believe the long-term future is profitable EV production, and this continues to be our north star,' GM CEO Mary Barra told analysts on Tuesday. GM announced in June that it would invest US$4 billion at three US facilities in Michigan, Kansas, and Tennessee, including a plan to move production of the Cadillac Escalade and increase output of its two big pickup trucks. It added production of its previously Mexico-produced Chevy Blazer to the Tennessee plant. The automaker imports about half of the vehicles it sells in the US, mainly from Mexico and South Korea. Crosstown rival Ford produces about 80 per cent of its US-sold vehicles domestically. Ford is expected to report second-quarter results next week Car companies are increasingly shifting their focus to bolstering the core lineup of petrol trucks and SUVs, as the growth rate of EV sales has slowed. Demand for battery-powered models already has slowed after rapid growth earlier this decade. The trend is intensified by the pending disappearance of government support for the battery-powered models. Sweeping tax and budget legislation approved by Congress will eliminate US$7,500 tax credits for buying or leasing new EVs and a US$4,000 used-EV credit at the end of September. Trump also signed tax and budget legislation that eliminates fines for failures to meet fuel economy rules, a move that makes it easier to build more petrol-powered vehicles. REUTERS
New York Post
22-07-2025
- Automotive
- New York Post
GM profit hurt by over $1B in tariffs — and shares tumble as impact expected to worsen
General Motors' second-quarter earnings took a $1.1 billion hit from tariffs, but the automaker still beat analyst expectations for the period, supported by strong sales of its core gasoline trucks and SUVs. The largest US automaker by sales said it expects the tariff impact to worsen in the third quarter and stuck to a previous estimate that trade headwinds threaten to hit the bottom line by $4 billion to $5 billion. GM said it could take steps to mitigate at least 30% of that impact. Shares fell about 6% in early trading. 3 GM's revenue in the quarter fell nearly 2% to about $47 billion from a year ago. Its quarterly adjusted earnings per share fell to $2.53 compared with $3.06 a year earlier. Bloomberg via Getty Images The automaker's revenue in the quarter ended June 30 fell nearly 2% to about $47 billion from a year ago. Its quarterly adjusted earnings per share fell to $2.53 compared with $3.06 a year earlier. Analysts on average expected adjusted profit of $2.44 per share, according to data compiled by LSEG. Its adjusted earnings before interest and taxes fell 32% to $3 billion. GM was among corporations that revised annual guidance due to the impact from President Trump's tariffs, lowering it to an annual adjusted core profit of between $10 billion and $12.5 billion. The company on Tuesday stood by that forecast. Beyond tariffs, GM's underlying business in the quarter was solid. Sales in the US market – its main profit center – rose 7%, while the company continued to command strong pricing on its pickup trucks and SUVs. GM swung back to a small profit in China, after losing money there a year earlier. Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. Jeep-maker Stellantis on Monday warned that tariffs would significantly affect results in the second half of 2025, and said tariffs cost it about 300 million euros in the first half of the year. Shares of rival Ford Motor, and US-traded shares of Stellantis fell about 1% Tuesday morning. 3 Analysts said GM may need to cut investment in future projects or find other ways to trim spending to offset the effect of tariffs. CEO Mary Barra, above. AP The automaker took several steps in recent months to bolster its combustion-engine operations through increased investment in its US factory base, calling into question its goal of ending the production of gas-powered cars and trucks by 2035. 'Despite slower EV industry growth, we believe the long-term future is profitable electric vehicle production, and this continues to be our North Star,' GM CEO Mary Barra told analysts Tuesday. GM announced in June that it would invest $4 billion at three facilities in Michigan, Kansas, and Tennessee, including a plan to move production of the Cadillac Escalade and increase output of its two big pickup trucks. It added production of its previously Mexico-produced Chevy Blazer to the Tennessee plant. The automaker imports about half of the vehicles it sells in the US, mainly from Mexico and South Korea. Crosstown rival Ford produces about 80% of its US-sold vehicles domestically. Ford is expected to report second-quarter results next week. 3 GM imports about half of the vehicles it sells in the US, mainly from Mexico and South Korea. REUTERS Car companies are increasingly shifting their focus to bolstering the core lineup of gas trucks and SUVs, as the growth rate of EV sales has slowed. Demand for battery-powered models already has slowed after rapid growth earlier this decade. The trend is intensified by the pending disappearance of government support for the battery-powered models. Sweeping tax and budget legislation approved by Congress will eliminate $7,500 tax credits for buying or leasing new electric vehicles and a $4,000 used-EV credit at the end of September. Trump also signed tax and budget legislation that eliminates fines for failures to meet fuel economy rules, a move that makes it easier to build more gas-powered vehicles.
Business Insider
21-07-2025
- Business
- Business Insider
Chip giant TSMC is the newest member of the $1 trillion market-cap club
Taiwan Semiconductor Manufacturing Company is the newest member of an elite club The company's Taiwanese shares surged to a record high on Friday, touching a $1 trillion valuation for the first time, while its US-traded American Depository Receipts were worth about $1.2 trillion. The stock is up almost 50% since hitting a low in April. The latest surge comes after strong second-quarter earnings. Much of TSMC's growth has been fueled by its lucrative niche market. As the primary AI chip supplier to top tech companies, including Apple, Nvidia, and Qualcomm, it has benefited from the robust demand that has transformed the market over the past few years. TSMC's leaders are optimistic that this growth will continue as the company enters the second half of the fiscal year, after stating that they aren't concerned about rising competition. "Our business in the second quarter was supported by continued robust AI and HPC-related demand" said CFO and VP of product Wendell Huang. "Moving into third quarter 2025, we expect our business to be supported by strong demand for our leading-edge process technologies." The company reported year-over-year revenue increase of 38% last quarter. It also showed a 12% revenue increase and 10% net income jump from Q1. The jump to a $1 trillion valuation comes after Nvidia, one of TSMC's top customers, made market history as the first company to reach a $4 trillion valuation earlier this month.
