FIG heads into its August 5 earnings report riding a 34% one-month rally — yet short sellers still own nearly 15% of the float, making this print a direct confrontation between a stock that has sharply re-rated and a bearish cohort that hasn't fully capitulated.
The short position tells a nuanced story. At 14.8% of the free float, short interest remains elevated — but the direction has reversed hard. Bears covered roughly 25% of their position in a single week, with shares short dropping from around 81 million to 62 million between July 22 and July 24. That's a meaningful retreat. Borrow availability has loosened alongside it, now running near 22% — tighter than normal but well off the near-zero readings seen earlier in July, when availability fell below 4%. Cost to borrow has fallen to just 0.61%, roughly half where it was a month ago. The short score of 70 ranks in the bottom 4th percentile of the market, flagging this as a name where short-side pressure remains structurally elevated even as active shorts have been pulling back.
Options positioning reinforces the bullish tilt. The put/call ratio has dropped to 0.34, well below its 20-day average of 0.43 — almost 1.1 standard deviations on the call-heavy side. Call dominance has been building since mid-July, when the PCR was running above 0.50. That shift aligns with the stock's price recovery and suggests options traders are positioned for continuation rather than protection. The contrast with the lending market is notable: availability remains tight enough that new shorts face friction, which gives the call-heavy options positioning a cleaner read.
The analyst community is constructive but pulling in targets. B of A reinstated with a Buy in early July after the stock's decline. Citigroup, which initiated at Buy with a $36 target in June, trimmed slightly to $35 last week while keeping the rating. The consensus mean target of $30.40 implies roughly 25% upside from the current $24.32, though Wells Fargo and RBC have both cut targets in recent weeks — the latter to $22, below where the stock already trades. Bulls point to Figma's seat-plus-consumption model evolution, new AI-native product launches, and its commanding position in collaborative design tooling. Bears focus on renewal risk as competition intensifies and flag that the company's single-step focus in the software creation lifecycle limits its expansion runway. The EV/EBITDA of roughly 64x reflects a premium that requires consistent execution to sustain.
Insider activity adds a layer of caution. CFO Praveer Melwani sold shares twice in early July, and the broader insider register shows only sells across the C-suite over the past 90 days. These are modest in size relative to holdings and likely reflect scheduled plans, but no insider buying has accompanied the rally. Meanwhile the stock has moved sharply relative to peers: MSFT gained 22% on the week and TTAN rose 18%, giving FIG's 15% weekly gain context as sector-wide rather than idiosyncratic — which raises the question of how much of FIG's recovery is fundamental versus macro tailwind.
The August 5 print will test whether Figma's revenue growth trajectory and early AI monetisation signals justify a stock that has re-rated 34% in a month while short sellers sit on a still-large position that has only partially unwound.
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