If you bought into Figma (FIG 4.74%), CoreWeave (CRWV 1.93%), or Recursion Pharmaceuticals (RXRX 3.91%) at last year's peak, you're not feeling pretty good right now. The three fallen growth stocks are trading 52%, 82%, and 72% below their 2025 highs, respectively.
Is buying now an opportunity or a mistake? Growth investor Cathie Wood thinks it's the former. The Ark Invest co-founder, CEO, and chief investment officer added to all three existing positions on Friday, as two of the three stocks plummeted more than 8% on the trading day. Let's see what is happening with all three of these volatile stocks.
Image source: Getty Images.
1. Figma
There's a firing line of cloud-based platforms getting pummeled in recent months. Most of them were market darlings last year. The bearish narrative has been loud for weeks. Artificial intelligence (AI) models have gotten so good so fast that a lot of premium services could soon be obsolete. They could be replaced with free or nearly free AI-generated solutions. Investors have been rotating out of software-as-a-service (SaaS) stocks, and Figma finds itself in those crosshairs of the SaaS-Squash sell-off.
I'm trying to make SaaS Squash stick since coming up with it during a Rule Breakers stock reveal last week. Humor me.
Figma stock is no stranger to artificial intelligence. Its namesake offering is an AI-propelled platform that makes it easy to spruce up the design process for websites, apps, and other digital products. It went public at $33 last summer and traded almost as high as $143 before pulling back. It's now a broken initial public offering (IPO), closing out the holiday trading week just above $26.
NYSE: FIG
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I don't agree with all of Cathie Wood's buying decisions on Friday, but I like this one. The fresh financials it reported after the market close on Wednesday were bullish, but the story is better told if I start three months earlier.
Figma disappointed the market with its third-quarter results in November. After seeing year-over-year revenue growth decelerate from 46% to 41% between the first and second quarters of 2025, Figma's top line rose by only 38%. Making a bad situation worse, its guidance called for the slowdown to continue with a 35% increase for the final three months of the year.
Reality packed a stronger uppercut. Figma's revenue rose 40% in the fourth quarter. Margins may have taken a step back, but the business model is clicking. Figma's net dollar retention rate was 136%, the highest it's been in more than two years. Figma appears to be bouncing back. Even through last week's market volatility, Figma stock has moved higher for five consecutive trading days. You can still get it for less than its IPO price, but that opportunity may not last long.
NASDAQ: CRWV
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2. CoreWeave
Another of last year's bumpy debutantes is CoreWeave. The hyperscaler hit the market at $40, only to trade as high as $187 this past summer. It's not a broken IPO like Figma, but it's trading for less than half of its summertime high.
Resource-intensive AI workloads need optimized data centers, and that's where CoreWeave steps up as a pick-and-shovel-and-dynamite play. What's the dynamite for? I don't know. I think it flowed nicely in there. CoreWeave stock is a speedster. Trailing revenue has more than tripled, and analysts expect the business to more than double in 2026.
CoreWeave reports quarterly results this week, shortly after Thursday's market close. With a huge order backlog and no sign of AI demand cooling, it's worth the market premium.
NASDAQ: RXRX
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3. Recursion Pharmaceuticals
It's been three summers since Nvidia (NVDA 1.28%) made a $50 million investment in Recursion Pharmaceuticals. It was a small position for Nvidia, but it turned heads for Recursion. The deal made sense at the time. Nvidia was the rising champion of AI chips fueling the new revolution. Recursion is a clinical-stage techbio company, leveraging AI to rewrite the drug discovery process.
The Nvidia news pushed the Recursion shares higher that summer, but it's been largely downhill ever since. A filing on Wednesday revealed that Nvidia had cashed out entirely of its stake in Recursion. It didn't weigh on the stock as much as one might think. The shares opened 12% lower on the news, but bounced back to close with a 2% gain on Wednesday.
Nvidia's presence as an owner didn't help much anyway. Recursion has still shed two-thirds of its value over the past year. Trailing revenue is essentially where it was when Nvidia came aboard. Losses have widened substantially with every passing year. Wood is trading at a steep discount to where the shares were just a few months or even a few years ago, but that doesn't mean it's any less risky at this point.
