Figma stock declined 29% in June amid broader software sector pullback driven by AI disruption fears, particularly after Anthropic's Claude Design launch. Disappointing earnings from peers like Salesforce, Adobe, and Oracle fueled concerns about seat-based SaaS vulnerability. The stock stabilized in late June following Citigroup's buy rating and Figma's Config conference announcements, with recovery continuing into July.

The article evaluates five hot tech stocks: Nvidia and ServiceNow are recommended as buys due to compelling valuations and strong growth prospects; Figma is also a buy candidate after a significant decline made it more attractive; IonQ is rated a sell due to an unjustifiably high valuation relative to its business; Netflix is rated a hold as the company faces uncertainty despite its market leadership.

SpaceX is set to go public on June 12, 2026 at $135 per share. While a $10,000 investment would theoretically buy 74 shares, retail investors face significant challenges: limited share allocations from brokerages, competition from institutional investors, and likely partial or no fills. The article cautions that most retail investors should avoid chasing the stock on day one, as IPO pops often lead to corrections.

SpaceX is set to launch the largest IPO in history on June 12 at $135 per share, valuing the company at $1.8 trillion. However, the article warns investors against buying on day one, citing historical patterns of tech IPOs experiencing explosive opening gains followed by sharp declines. Examples include Palantir, Snowflake, Figma, and Cerebras, which all saw significant post-IPO sell-offs. The author recommends patience and waiting for market fundamentals to reassert themselves rather than chasing opening-day momentum.

Fidelity has lowered the minimum account balance requirement for SpaceX IPO participation to $2,000, down from traditional six-figure minimums. While this appears to democratize IPO access for retail investors, the article raises concerns that this expansion may primarily benefit pre-IPO shareholders seeking exit liquidity and could expose less experienced investors to FOMO-driven losses, similar to patterns seen in previous tech IPOs.

Adobe's stock has declined 40% from its 2025 peak as investors worry that AI and competition from nimbler rivals like Canva and Figma are eroding its Creative Cloud competitive moat. Despite these concerns, Adobe maintains strong fundamentals with 10%+ revenue growth, $9.8B in free cash flow, and a 9% FCF yield, suggesting the market may be pricing in excessive pessimism.

Figma stock surged 44% in May following strong first-quarter earnings that beat expectations. The company reported 46% revenue growth to $333.4 million and improved profitability metrics, while new AI products like Figma Make and Figma Weave are driving user conversion. Figma raised full-year revenue guidance to $1.422-$1.428 billion, implying 35% year-over-year growth.

Goldman Sachs cut Figma's price target to $30 from $35, but the article argues this could signal a buying opportunity. Despite an 80% decline from its IPO peak, Figma shows strong fundamentals with 46% YoY revenue growth and improved valuation metrics. Historical precedents with Apple and Netflix suggest price target cuts can precede stock recoveries.

Short sellers are heavily targeting 10 stocks across energy, crypto, AI and software sectors. Venture Global leads with an extreme 86.10% short interest, while CleanSpark, Lucid Group, and others face significant bearish positioning. Despite heavy shorting, several stocks including Bitdeer, Figma, and UiPath gained on the session, suggesting potential for short squeezes if positive catalysts emerge.

Jeff Clark of TradeSmith argues that while AI and semiconductor stocks dominate headlines, a market rotation is coming. He identifies three undervalued stocks that have been abandoned despite strong fundamentals: Figma (design platform integrating AI), Kratos Defense (unmanned aerial systems with 45%+ earnings growth), and SoundHound AI (conversational voice AI). These stocks have retreated from peaks but offer better entry points than when they were making headlines.

Global semiconductor stocks retreated after Trump and Xi's summit failed to announce major chip agreements or breakthroughs on NVIDIA's China business. Key developments include Taiwan Semiconductor's $31.28B capital spending approval for AI chip manufacturing, Meta offering free WhatsApp access to competing AI developers to resolve EU antitrust concerns, Trump Mobile delivering delayed $499 smartphones, and the Elon Musk vs. OpenAI trial concluding with closing arguments. Notable earnings included strong results from Applied Materials, Cisco, and Tower Semiconductor, while Alibaba reported mixed results and Birkenstock faced margin pressures.

U.S. equities declined Friday as rising oil prices and bond-market losses triggered rate-hike concerns, sending Treasury yields sharply higher. The Nasdaq 100 fell 1.6%, Russell 2000 dropped 2.4%, and S&P 500 declined 1.1%. Energy stocks rallied on crude surge, while tech and AI stocks suffered heavy losses. Intel crashed 7%, Tesla fell 4.3%, and NVIDIA dropped 3.5%. Precious metals collapsed amid dollar strength and rising real yields.