Google Stitch "Ambient Design" Crashes Figma Stock 8.8%
Google Stitch AI design tool challenges Figma with vibe design, causing stock drop and reshaping UIUX workflows
“AI Disruption” Publication 9200 Subscriptions 20% Discount Offer Link.
Figma, in Danger!
Recently, Google posted a tweet announcing a major update to its AI design tool Stitch.
This update hit hard — it directly caused Figma’s stock price to drop 8.8% that very day. Since its IPO in August 2025, Figma’s stock has already fallen by about 80% in total.
What exactly is Stitch?
Stitch was originally an AI-native design platform developed by Google Labs and powered by the Gemini model. With this update, Google borrowed the hugely popular “vibe coding” concept from the AI community and repositioned it as a “vibe design platform”.
“Vibe design” means users can quickly generate high-fidelity interfaces, interactive prototypes, and consistent design systems on an AI-native infinite canvas using only natural language descriptions.
It directly targets independent developers, product managers, and designers, compressing the cycle from idea to clickable prototype down to minutes, completely reshaping the traditional UI/UX workflow.
