Figma Inc. shares tumbled 27% to $88.60 on Monday, erasing about $11 billion in market value just days after the design-software maker’s record-setting debut. The drop followed a 250% first-day surge that took the stock to $115.50 and briefly pushed its market capitalisation near $68 billion, stoking debate over whether the initial public offering was under-priced. Even after the pull-back, Figma’s fully diluted valuation stands near $56 billion—almost triple the $20 billion Adobe agreed to pay before regulators blocked that deal in 2023—and about 160% above the $33 IPO price. The retreat was attributed by traders to profit-taking and the IPO’s slim float, roughly 7% of shares outstanding, which intensified the earlier rally and Monday’s reversal. Chief Executive Officer Dylan Field, who owns more than 54 million shares, still holds a stake worth roughly $5 billion. The volatile start underscores both renewed investor appetite for fast-growing software companies and the risks of a thinly supplied listing, as bankers and would-be issuers watch whether Figma’s gyrations cool the tech-IPO pipeline that its blockbuster debut helped reopen.