Adobe’s Stock Took A Hit After $20 Billion Figma Acquisition Announcement

Adobe’s recent acquisition of Figma for $20 billion has investors worried that the company is overpaying for the popular design platform. While Figma is a well-respected company with a strong product, some investors feel that Adobe is overpaying for the startup.

There are a few key reasons why investors are worried about this acquisition. First, Adobe is paying a hefty price tag for Figma. The $20 billion price tag is twice as expensive as Figma’s 2021 $10 billion valuation. This is a high price to pay for any company, let alone a startup.

Second, Adobe has a history of overpaying for acquisitions. In 2014, Adobe paid $800 million for stock photo service Fotolia. This acquisition was widely seen as a flop, as Adobe failed to integrate the service into its Creative Cloud products.

Third, Figma is a young company with a lot of potential, but it is not yet profitable. Adobe is betting big on Figma’s future success, but there is no guarantee that the company will be able to live up to its hype.

Overall, investors are worried that Adobe is overpaying for Figma. While Figma is a strong company with a lot of potential, Adobe is taking a big risk by paying such a high price for the startup. Only time will tell if this acquisition will pay off for Adobe in the long run.