Stitch

Google’s launch of Stitch, an AI-powered design tool, has negatively impacted Figma’s stock. Stitch generates designs from text prompts and offers real-time critiques, potentially disrupting creative workflows. This development, coupled with AI’s broader influence on the software industry, has contributed to significant stock declines for Figma. Despite an existing partnership where Google’s AI is integrated into Figma, Stitch represents a new competitive threat.