Figma vs. Fastly: Which Cloud Tech Stock Is a Better Buy in 2026?
As digital infrastructure needs grow, investors must decide between high-growth creative tools and the edge networks that deliver them. Choosing between Figma Inc. (FIG -4.64%) and Fastly Inc. (FSLY -12.05%) requires evaluating their distinct paths.
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FIG & FSLY: Performance Comparison
Key Financial Metrics
FIG – Figma
$21.29
–4.64% (-$1.04)
FSLY – Fastly
$22.55
–12.05% (-$3.09)
Market Cap
$12B
52wk Range
$16.60 – $50.30
Gross Margin
79.14%
P/E Ratio
-7.28
EPS (TTM)
-$3.06
Market Cap
$4.1B
52wk Range
$7.87 – $34.82
Gross Margin
59.07%
P/E Ratio
-47.94
EPS (TTM)
-$0.53
FIG – Figma
$21.29
–4.64% (-$1.04)
Market Cap
$12B
52wk Range
$16.60 – $50.30
Gross Margin
79.14%
P/E Ratio
-7.28
EPS (TTM)
-$3.06
FSLY – Fastly
$22.55
–12.05% (-$3.09)
Market Cap
$4.1B
52wk Range
$7.87 – $34.82
Gross Margin
59.07%
P/E Ratio
-47.94
EPS (TTM)
-$0.53
Figma provides a collaborative workspace for design and development teams to build digital products and experiences. Fastly operates an edge cloud platform that secures and accelerates web traffic for major global enterprises. Both are vital to the modern internet, but they offer distinct financial profiles and risk levels for investors in 2026.
The case for Figma Inc.
Figma is a prominent player among tech stocks, selling a collaborative design platform to design and development teams. In March 2025, the company shifted its business model by introducing administrator-led seat management to better serve enterprise deployments. It also launched AI credits for its seats, with plans to begin enforcing limits and offering paid AI subscriptions in early 2026.
In FY 2025, as reported in its latest annual report filed for that period, revenue reached about $1.1 billion, representing a growth rate of approximately 41% over the previous year. The company reported a net loss of roughly $1.3 billion for the same fiscal period. This performance resulted in a negative net margin of approximately 118%, which measures how much of each dollar of revenue remains after all expenses are paid.
As of its December 2025 balance sheet, the current ratio is roughly 2.6x, representing the company’s ability to pay short-term debts with its short-term assets. The debt-to-equity ratio is approximately 0.1x, which compares total debt to shareholder equity. Note that stock-based compensation represented roughly 544% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.
The case for Fastly Inc.
Fastly provides an edge cloud platform that helps developers secure and deliver websites closer to their end users. It relies on a concentrated group of enterprise customers, including Comcast Corp. (CMCSA +3.70%) and ByteDance, with its ten largest clients accounting for roughly 32% of revenue in 2025. The company also recently expanded its partnership with Jio Platforms Limited to boost content delivery services in India.
In FY 2025, revenue reached around $624.0 million, an increase of roughly 14.8% compared to the prior year. The company recorded a net loss of about $121.7 million, which is a narrower loss than it reported in 2024. This resulted in a negative net margin of approximately 19.5% for the fiscal year.
As of its December 2025 balance sheet, the current ratio is roughly 2.6x, indicating the company can cover its short-term liabilities with short-term assets. The debt-to-equity ratio is approximately 0.5x, calculated by dividing the company’s total debt by its shareholders’ equity. Note that stock-based compensation represented roughly 124.2% of operating cash flow, meaning reported cash generation is heavily inflated by this non-cash add-back.
Risk profile comparison
Figma faces intense competition from companies offering end-to-end design platforms and AI-driven solutions like Adobe Inc. (ADBE +1.02%). Its integration of AI technology carries risks of infrastructure cost pressures and the potential for generating biased or infringing outputs. Additionally, its reliance on Amazon.com Inc. (AMZN -2.24%) for platform hosting and the uncertainty of managing rapid growth after its terminated merger are significant threats.
Fastly faces intense competition in the edge computing market from major cloud providers like Amazon, Microsoft Corp. (MSFT -2.03%), and Alphabet Inc. (GOOGL -2.33%). Operational risks are elevated due to its heavy reliance on third-party bandwidth providers and potential server capacity forecasting errors. The company is also navigating a federal securities fraud class action lawsuit filed in 2024.
Valuation comparison
Fastly carries a lower Forward P/E and P/S ratio than Figma, suggesting it is the more conservatively valued option. The Forward P/E compares current stock price to future earnings estimates, while the P/S ratio measures market value relative to sales over the past twelve months.
MetricFigmaFastlyForward P/E80.4×45.7xP/S ratio8.7×5.6x
Valuation metrics include those sourced from Financial Modeling Prep (FMP) and may differ from those of other data providers.
Which stock would I buy in 2026?
Fastly processes over 5 trillion requests a day, a huge number that is actually just a small part of the total addressable market (TAM) for the business. Management sees the TAM as $22 billion, giving it a long runway for growth. The company has posted three straight quarters of more than 20% growth (year-over-year).
One of the company’s competitive edges, it says, is that it delivers its resources dynamically, allocating them in real time to whatever the load is on a global basis. So, for example, one Thursday night, its network might be delivering Thursday Night Football. On Black Friday, the exact same network is handling e-commerce. The next week, it might be handling a video game release. Fastly says that makes it a much more efficient network than competitors, who have siloed networks for security, compute, and delivery, et cetera.
For the current fiscal year, look for sales to grow to $741 million, a 19% rise over the prior year, with a much narrower net loss of about $72 million.
Figma, meanwhile, has seen its user experience design solution become the industry standard for digital asset and mobile application development. The company uses this niche dominance to introduce additional modules, helping transform it from a single-point solution into a full design platform.
One differentiator from
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.