Figma (FIG) Stock Is Trending After Google’s AI ‘Vibe Design’ Tool Unveiled: Here Is What You Should Know

by | Mar 19, 2026 | General

Figma Inc. (NYSE:FIG) shares are trending on Wednesday night.

After-Hours Dip Extends a Brutal Session

Shares of the software company fell 0.24% to $25.20 in after-hours trading on Wednesday.

According to Benzinga Pro data, the stock had dropped 7.98% in the regular session to close at $25.26. The decline comes as investors react to a direct competitive challenge from Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL).

Google Stitch Enters the Design Arena

Figma is a cloud-based collaborative design platform widely used by product teams and UI/UX designers to build and prototype software interfaces.

Google Labs, an experimental division of Google and a subsidiary of Alphabet, unveiled a major update to its Stitch platform on Wednesday, repositioning it as an AI-native software design canvas with AI-powered UI design and prototyping capabilities that directly compete with Figma.

Rustin Banks, Product Manager at Google Labs, said the updated tool introduces “vibe designing,” a workflow that allows users to generate high-fidelity user interfaces from natural language, bypassing traditional wireframing entirely. This is the exact creative territory Figma dominates among professional designers and product teams.

What Investors Are Watching

Stitch also debuts voice-driven design, an agent manager to handle multiple ideas simultaneously and MCP server integration that exports designs directly to developer tools, along with a DESIGN.md export system that allows teams to carry design rules across projects and coding tools.

In February, Figma reported fourth-quarter revenue of $303.78 million and earnings per share of $0.08.

Trading Metrics, Technical Analysis

Figma has a market capitalization of $13.18 billion, with a 52-week high of $142.92 and a 52-week low of $18.41.

The Relative Strength Index (RSI) of FIG stands at 42.12.

Over the past 12 months, the mid-cap stock has dropped 78.13%.

Currently, FIG is positioned very close to its annual low.

Benzinga’s Edge Stock Rankings indicates FIG has a negative price trend across all time frames.

Photo by rblfmr via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.