Title pretty much says it all, I bought 100 shares at the IPO, but not the IPO price. The first price I could buy at was $101 so I went all in. My thesis for the stock was pretty simple, I have worked as a software engineer in consulting for about 10 years now and I have never – I mean neverrrrr – in that time, worked at a place that does not rely heavily on Figma. VERY early in my career, there were some places still using photoshop and our products, but the user experience of Figma is just singular. It being web based made collaboration soo much easier and I truly believe in the product long term.
This is probably the most I have ever invested in a single stock, I was pretty confident that there would be some post-IPO sell off but I truly didn't imagine it would go this low. Its not like a life altering loss for me or anything but definitely feels real bad.
Currently, I am hedging losses selling long dated covered calls above my buy in price. Curious if there are any other strategies to hedge my losses and also curious how others feel about the companies long term prospects? Anyone else in the boat im in?
Bought in big on FIG at the IPO and down 50%, looking for advice?
byu/conconxweewee1 ininvesting
Posted by conconxweewee1
21 Comments
Sell covered calls hope they get called
you’re analysis was right to a certain extent. yea figma is used by all F500 companies and that’s why there is no room left to grow. The service they provide is also not that complex.
As a long term investment it’s fine, but in the short term I have no idea. Hopefully for your sake SPY continues to trend up, if there’s any sort of market wide correction this stock is going to get hammered likely below IPO price.
Same here, but averaged it down. I‘ll just wait it out, it’ll recover🤷♂️
Bought at $121, $90 and $55. Currently 170 pieces in.
And since they went public, they started their enshittification program, which is a „good“ thing for the stock price, but bad for all the companies using Figma.
The only thing that bugs me is that I sold Unity for a small profit near 0 in order to buy Figma. I was unterwater with U for about 2 years and „patiently“ waited. And seeing U grow nearly 50% while FIG fell around 50% hurts a little.
Buying an IPO first day (not pre IPO) is 99% of the time a very bad idea. It almost always declines very rapidly as the hype wares off.
If it is a solid company, it could very well go back up but it’s gonna take some time.
I would be careful selling long dated calls. While you can slowly claw away at your losses that way, if it does ever rebound quickly, you’re going to be capped.
I know it may feel like you’re too deep in right now but you need to research and reevaluate if you think the company is solid, if the price it’s currently at is a good price, and if you have conviction it’s going to increase. If you don’t feel great about every one of those, then the best option is to cut your loses and deploy that capital elsewhere.
Sometimes our biggest loses are our best learning opportunities.
Stick to ETFs
Don’t ever do that again.
Lmao
The common price pattern for IPOs is a big surge on opening day, sometimes a continuation for a few more days, and then a big sell-off from the IPO profit-takers, often to well below the IPO price. Then it finds its bottom, and if it’s a good, solid company (which Figma seems to be), it starts working its way back up.
For the future, it’s generally considered a better IPO investing strategy to wait until after the sell-off, when the stock finds its base. Occasionally that will mean buying in higher than the IPO price, but… the IPO is crowded. And that means you’re paying a premium.
Fuck fig, ipo is a gamble! Like craps
Tech IPOs often take a beating after the hype wears off. If you believe in Figma’s fundamentals, averaging down might help, but only if you’re confident long term
Learn the lesson. The company will probably be for. Stick to QQQM. Buy weekly. Set to auto. Best of luck.
Lol
Thanks not investing, that’s gambling.
If 10 k is “ all in” for you, you should not be in individual stocks let alone ipos or options
You should have 3,mo salary banked for emergencies, the 1st 100 k should go to etfs or mutual funds ( indexed preferably). You need 20 different stocks to have acceptable variance if you have over 100 k to invest
Advice, sell, take your 5 k loss and bank it. You will get some back as a tax loss.
Many such cases
IPOs are a rip off. The private investors get the deal then schmucks like us jump in to make them richer. The classic example is Airbnb. I finally threw my hands up after 5 years and sold it at a loss.
2nd sentence, “ I went all in”. That is the definition of “all in”
Figma is a solid company, it will grow eventually. Double down now, and be prepared to double down again in a year. Eventually you’ll be in profit, it will be similar to the already mentioned HOOD here
Tough love you need- Recognize you don’t understand how to invest in single names. Everything you said in your thesis was priced in and more. Sell and take the loss as a lesson learned, and invest in passive ETFs from here on out
You bought 100 shares ~10k. As a software engineer, that shouldn’t be THAT big of an amount to stress you out. Forget about it and check it in a year.