Tech industry
from24/7 Wall St.
1 day agoAI Rally May Have Gone Too Far With Some Stocks Up 70% in a Month
AI-driven gains have broadened beyond core AI leaders, raising froth concerns as valuations rise and software earnings must catch up.
A major problem for software companies is that their opponent is largely hypothetical. Even if both companies report blockbuster earnings, there's still the counterargument that AI will eventually eat their lunch.
Figma presented its figures for the first time since its IPO in July. Revenue in the second quarter came in at $249.6 million, just above analysts' expectations of $248.8 million and 41 percent higher than a year earlier. The company posted a small net profit of $846,000, compared to a loss of $828 million in the same period last year. Adjusted operating profit was $11.5 million.