Shares of online design platform Figma fell 11 percent over two days. The stock slid after Google released its AI-based design tool, Stitch.
Figma shares are down 35 percent so far this year as competition intensifies with the spread of AI.
Google's Stitch generates designs based on prompts entered by users. It also supports voice commands and real-time design feedback. It is currently offered as a free beta version, and no commercialization schedule has been disclosed, but it had an immediate direct impact on Figma shares, CNBC reported on March 19 local time.
Figma emphasized its competitiveness in the AI design market at the time of its IPO in July last year, but concerns are growing among investors.
If Google later converts Stitch into a paid service, it is highly likely to directly target the enterprise design workflow market. Google has massive financial resources and distribution networks, and it can use a strategy of bundling its own products, CNBC reported.
Chi-gyu Hwang (황치규)
delight@d-today.co.kr