10 Firms Kick Off 2025 Trading in The Red

1. SoFi Technologies Inc. (NASDAQ:SOFI)

SoFi Technologies 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.

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.