Shares in AI-powered design tool Figma soared over 200% in its US debut as investors scrambled to get a piece of one of the most highly anticipated tech IPOs of the last two years.

Figma raised $1.2bn at an IPO price of $33 before the stock rocketed over 200% higher to close at $117, valuing the company at more than $60bn.

Adobe had previously tried to buy Figma for $20bn but was blocked by regulators.

Founded in 2012 with the mission to “eliminate the gap between imagination and reality,” Figma provides online design services for websites, apps, and digital products.

It allows designers, developers, and teams to collaborate in real time on the same file, making it easy to design, prototype, give feedback, and hand off work for development.

The company is profitable, having recorded $44.9m in the first quarter of the year on revenues of $228m. Having generated $749m in revenue in 2024, Figma is clearly still enjoying rapid growth.

Figma has been reported to have over 1,000 clients paying the company more than $100,000 a year, demonstrating Figma’s deep integration into the workflows of some of the world’s biggest tech and design firms.

The FTSE 100 was firmly on the front foot as earnings on both sides of the pond fired up investor sentiment and offset any disappointment around the Fed chair’s hawkish tone on interest rates.

London’s leading index was trading 0.3% higher at 9,169 at the time of writing.

“Stellar results from Microsoft and Meta have fired up investors, quickly shifting the focus from US interest rates potentially staying higher for longer, to an environment where big tech is ruling the roost again,” said Russ Mould, investment director at AJ Bell.

“The probability of a US rate cut in September has fallen since the Fed’s rate decision on Wednesday, with the market now pricing in a 57% chance of rates staying level versus 35% a day ago. Normally, such a shift would be negative for investors who typically prefer rates to be trending lower. However, the big tech reporting season has got everyone excited about mega profits and tremendous earnings growth.”

US stocks sank in the close overnight, but futures rebounded sharply as Meta and Microsoft earnings broke after the bell.

In addition to strong earnings releases from US tech, UK investors were treated to a plethora of upbeat results from FTSE 100 stocks.

Rolls-Royce was the FTSE 100’s top riser after raising its profit guidance for the year following a 50% increase in operating profit in the first half.

“Rolls-Royce continues to soar above expectations, delivering yet another set of high-flying results and profit guidance upgrades. The group produces aeroplane engines for larger, long-haul planes. Revenues are being boosted by the upward trend in engine-flying hours, which are now cruising well above pre-pandemic levels,” explained Aarin Chiekrie, equity analyst, Hargreaves Lansdown.

Rentokil Initial shares soared 9% after the pest control group maintained guidance as its US business surprised investors with rare positivity.

“Having fallen from around the 600p level two years ago, they have been trading around the 350p level in recent weeks, so Rentokil Investors could have been forgiven for feeling like the rats were getting the better treatment,” Steve Clayton, head of equity funds, Hargreaves Lansdown said.

“Today’s news that there are signs of improvement in trading at the Group’s key US Pest division was enough to rally spirits, with investors pushing the stock as much as 12% higher.”

Shell was also among the risers on the news that it would commence a fresh $3.5bn share buyback as cash generation remained robust despite lower oil prices.

Mark Crouch, market analyst for eToro, noted that “Shell delivered results that, while down on last year’s bumper profits, comfortably exceeded analyst expectations. In a weaker oil price environment, the group’s performance has been notably resilient, drawing favourable comparison with US peers rather than its more volatile UK counterpart, BP.”

Shell shares were 2% higher at the time of writing.

Amid the furore surrounding Powell’s press conference and US tech earnings releases, Trump announced that refined metals would be exempt from tariffs, sending metals futures sharply lower.

Lower metals prices translated into a weaker session for the miners as copper pure play Antofagasta tumbled 5%. Glencore, Anglo American, and Rio Tinto were all lower by more than 4%.

The FTSE 100 would likely have broken through 9,200 today if the copper tariff hadn’t been announced overnight.

Rolls-Royce shares rocketed to a fresh all-time record high on Thursday as the group reported a bumper first half and increased its profit guidance for the full year.

Rolls-Royce delivered a stellar first-half performance, with underlying operating profit surging 50% to £1.7bn despite ongoing supply chain headwinds and tariff pressures.

The British aerospace and defence giant raised its full-year guidance, now expecting underlying operating profit of £3.1bn-£3.2bn. Free cash flow guidance was also lifted to £3.0bn-£3.1bn.

“Rolls-Royce continues to soar above expectations, delivering yet another set of high-flying results and profit guidance upgrades. The group produces aeroplane engines for larger, long-haul planes. Revenues are being boosted by the upward trend in engine-flying hours, which are now cruising well above pre-pandemic levels,” said Aarin Chiekrie, equity analyst, Hargreaves Lansdown.

“But that’s just one part of the puzzle. Layoffs, contract renegotiations, process changes, and increased use of data to drive efficiencies have put Rolls on a much healthier platform. As a result, margins have moved much higher, helping to convert the increased flying hours and revenue into profits.”

Operating margins climbed sharply to 19.1% from 14.0% in the prior year.

Civil Aerospace led the charge with margins reaching 24.9%, driven by robust aftermarket performance and improved contractual terms. Power Systems margins jumped to 15.3% as data centre demand accelerated.

Free cash flow strengthened to £1.6bn, bolstered by higher profits and continued growth in long-term service agreements. The company’s net cash position improved by £609m to £1.1bn.

Shareholders will receive an interim dividend of 4.5p per share in September. Rolls-Royce has completed £0.4bn of its planned £1bn share buyback programme, with total shareholder returns expected to reach £1.9bn through 2025 including dividends.

The engineering group said it expects to fully offset announced tariffs through mitigating actions, whilst monitoring broader economic impacts.

Rolls-Royce shares were trading up 10% at 1,095p at the time of writing.

“Rolls-Royce’s near tenfold rally since early 2023 reflects strong execution, rising profits and growing cash returns,” explained Chris Beauchamp, Chief Market Analyst at IG.

“Civil Aerospace is delivering, Power Systems is expanding fast, and Defence, which IG clients continue to expect to do well, remains a steady contributor. With SMRs offering long-term upside and cash delivery on track, the re-rating may still have legs.”

Meta shares soared in the US aftermarket following the release of earnings that obliterated analyst estimates, driven by surging advertising spending across its platforms.

Meta’s Q2 revenue came in at $47.5bn, far higher than the $44.8bn expected by analysts. EPS rocketed 38% higher to $7.14.

“Meta has knocked it out of the park. Pick your metric and Meta crushed it, from ad revenue growth to daily users, all the way down to the profit lines,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“AI is clearly delivering real-world benefits for advertisers, and they’re willing to pay more as a result. Average price per ad was up 9% over the quarter, a clear indication that Meta is delivering an improved product for both users and advertisers.”

Meta’s core ‘Daily Active People (DAP)’ metric rose again to 3.46 billion people in the quarter. This is the total number of people who used one of Facebook, Instagram, Messenger, or WhatsApp at least once during the period.

Higher ad costs and a higher number of people looking at those ads mean higher revenues and profits.

Meta made $5 billion more in net income in Q2 than the same period last year. 

So no wonder Zuckerberg is reportedly prepared to splash out over $100m on a signing-on bonus to poach a single OpenAI employee as the AI race continues unabated.

Meta’s spending on AI is mind-blowing. Not wanting to fall behind rivals, the firm has upped its guided capex spend to as much as $72bn this year. The recent acquisition of a 49% stake in Scale AI in June demonstrates their intent to ensure they are a major player in the space. 

“The broader focus now turns to Meta’s mammoth AI investment plans and whether it can continue to manage those costs without hurting earnings or free cash flow,” Britzman explained.

For now, at least, investors are more than content with surging revenues and profits. Meta shares were 10% higher at the time of writing.