
0:36
Figma's IPO includes a green shoe provision that lets underwriters profit from the post-IPO price surge. Historically, IPOs rarely deliver positive returns for average investors. The speaker advises avoiding Figma.

Figma's IPO includes a green shoe provision that lets underwriters profit from the post-IPO price surge. Historically, IPOs rarely deliver positive returns for average investors. The speaker advises avoiding Figma.
Figma's got a green shoe. That means the bankers made money on the pop. So while some people might criticize them for wanting to IPO at $33 when the stock shoots up 250%, they still made money because they can sell stock into that super high price. So don't think that this wasn't a way for Wall Street to make more money. This is a great way for Wall Street to take pockets, take money from the pockets of the many and put it into their few pockets. That's what IPOs mostly are. Over the history of the world, IPOs have not made money on average for investors. There are very few that actually end up performing well. We recommend you avoid Figma.

Earnings Recap: Decoding Signals from SpaceX, Palantir, Merck, AMD, Caterpillar, McDonald’s, & More

Watch Our Earnings Recap: Market Heavyweights Apple, Microsoft, Amazon, Meta, Visa, and More

Earnings Recap: Top Insights from JPMorgan, Bank of America, Taiwan Semiconductor, Netflix, and More

The IPO Melt Up: How Smart Investors Use AI to Find Abnormal Investment Opportunities