We recently compiled a list of the 10 Firms Kick Off 2025 Trading in The Red. In this article, we are going to take a look at where SoFi Technologies Inc. (NASDAQ:SOFI) stands against the other stocks.
The stock market finished the first trading day of the year in the negative territory—a fifth straight day, over the lack of catalysts to spark trading appetite.
The Dow Jones Industrial Average was down the most by 0.36 percent, the S&P 500 decreased 0.22 percent, and the Nasdaq Composite dipped 0.16 percent.
Ten companies also kicked off trading mirroring the broader market downturn. In this article, let’s explore the reasons behind their decline.
To come up with Thursday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A professional banker shaking hands with an entrepreneur in a boardroom setting.
SoFi Technologies Inc. (NASDAQ:SOFI)
SoFi Technologies Inc. (NASDAQ:SOFI) dropped for a fourth day on Thursday, losing 8.25 percent or 1.27 points to end at $14.13 each following a rating downgrade from Keefe, Bruyette & Woods’s Timothy Switzer.
Prior to market open, analysts at the brokerage firm rated the stock “underperform” and shaved its price target to $7 from $8 previously.
“The stock’s valuation has become overstretched across a wide matrix of multiples,” the brokerage firm said, referring to its lofty valuation and ambitious financial targets.
A strong economy, lower interest rates, and the company’s “success driving better scale and profitability… justifies shifting our investment thesis towards a more long-term view of what a mature SoFi looks like,” it added.
Overall SOFI ranks 1st on our list of the stocks that crashed yesterday. While we acknowledge the potential of SOFI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SOFI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.