Is it Asana 2.0?

昨日

- Similar to ASAN , FIG has a good product, customer friendly, good UI/UX, easy to use.
- Valuation is out whack because IPO frenzy

- Things I like is their growth which 40%+ yoy but my concern is that the technical addressable market isn't huge for design space in general.

- Their are three broad archetype of users:

1. Who doesn't know design at all (majority) : these people use Canva or AI tool for quick designs and ideally these people want free tool.

2. Freelancers to Early professionals: This is the figma's core base where low learning curve help these customers to get started early and prototype faster.

3. Mid career professionals: These folks are open to using new tools if it makes their life easier.

4. Hardcore professionals with years of experience : This segment want heavy editing capability and are mostly ADBE hardcore users. They know ins and out of ADBE suite. They might not easily switch to FIG because FIG feature capability isn't extensive enough what a full blown ADBE product offers.

FIG has strong foothold in type 1-3 is going after type 4. But my concern is even if I combine all the types market isn't large enough as the majority ( say noobs ) will always prefer a free tool and ideally some sort of AI generated edits

昨日

ノート

For me, I like the company but it's not a buy for me at these levels as fundamentals are out of whack. It has good earning growth but that would come down sharply as technical addressable market isn't huge. As of now, they are eating low hanging ADBE customers.

昨日

ノート

I will think about it if it goes below $30 bucks or they expand their TAM by adding new products which gives me confidence that high double digit growth is sustainable for the next 5 years

昨日

ノート

Insiders have yet to unload their shares which they are holding. Almost all insiders had stock based compensation which has paper money for years. Their stock selling window is getting opened which will keep pressure on stock price imo