Google Stitch shock
Google’s new generative tool Stitch reportedly wiped billions off Figma’s market cap within hours — Stitch automates interface layouts, assets and even code handoff so designers can move from idea to interactive prototype in minutes, the video argues. (youtube.com)
Figma shares fell about 8% on March 18, 2026 and then dropped more than 4% the next day, a roughly 12% decline across two trading sessions. (cnbc.com) PitchBook recorded Figma’s market capitalization at $12.6 billion and a share price near $24.22 on March 19, 2026. (pitchbook.com) Google’s official posts on the Stitch update described new capabilities added in March — a “vibe design” prompt workflow, an AI‑native infinite canvas, a built‑in design agent that gives real‑time critiques, voice editing, and direct export paths to developer tools — and labeled the offering experimental under Google Labs. (blog.google) CNBC reported Stitch was released in beta, that Google currently isn’t charging for the feature, and that the company and Figma had expanded their AI/cloud relationship in October 2025. (cnbc.com) Figma’s February 18, 2026 earnings release showed fiscal‑year 2025 revenue of $1.056 billion, GAAP loss from operations of $1.3 billion, and $1.7 billion in cash and marketable securities at year‑end. (businesswire.com) Market coverage and trading feeds linked the selloff to investor concern that a free, Google‑distributed design workflow could pressure incumbents’ pricing and enterprise adoption; CNBC noted a Figma spokesperson declined to comment. (cnbc.com)
