Shares of design software maker Figma (FIG) surged in their debut on the New York Stock Exchange on Thursday, closing at $115.50 each, more than triple the IPO price of $33.00. Shares held onto their gains on Friday, even as the broader market sold off following surprisingly weak economic data.
Despite mounting headwinds like a slowing economy and stretched valuations, analysts say Figma’s strong performance is a sign that investors are still risk-on when it comes to the technology sector. This has also stoked optimism about the potential for a rebound in the IPO market, which has been relatively sluggish in the first half of the year.
This post originally appeared at Morningstar.