Figma ‘s 250% spectacular debut on the New York Stock Exchange has some quarters of the market doubting whether the company can maintain its price level. CNBC’s analysis of first-day trading performance for stocks over the past three decades shows that such blockbuster IPOs have just better than even odds of typically holding on to their value for at least a year. Since 1992, according to FactSet data, there are 20 stocks with a market cap of more than $250 million that had 50% or more gain on the first day of trading. Of these, 11 stocks — 55% of the dataset — were higher than their first day’s gains a year later. One stock not included in our analysis is Diginex , a technology company that helps businesses track their ESG metrics, which popped 70% on its IPO in January this year. The stock has so far gained more than 600%. The companies in the dataset are among those that are still actively trading on the stock market today. However, their IPOs may have occurred prior to a merger. For instance, Caesars Entertainment merged with Eldorado Resorts in 2020 in a $17.3 billion deal. The original parent company in 1992 tripped its value on the first day of trading. The company’s share price went on to rally by more than 50 times a year after its IPO, according to FactSet data.
