Double Downgrades: Can SOFI Stock Maintain Its Run or Is a Correction Coming?[Stocks](https://moneymorning.com/category/article/stocks/) # Double Downgrades: Can SOFI Stock Maintain Its Run or Is a Correction Coming?  by Joshua Enomoto  October 6, 2025  Share it: **SoFi Technologies** ( [SOFI](https://moneymorning.com/stocks/sofi)) may be facing one of the deepest ironies on Wall Street. Whenever a publicly traded enterprise enjoys resounding success in the market, the upswing itself represents one of the biggest headwinds. Part of the problem centers on liquidity and positioning saturation. Effectively, after a parabolic run, most buyers are already in. Thus, momentum slows not because the narrative has faded but because there’s no marginal capital left to give chase. When assessing [SOFI](https://moneymorning.com/stocks/sofi) stock, it’s really a tale of two cities. On the one hand, early stakeholders have been drunk with joy regarding the blistering performance. Since the beginning of this year, [SOFI](https://moneymorning.com/stocks/sofi) has gained nearly 72%. Over the past 52 weeks, the equity has skyrocketed to the tune of over 220%. And better yet, investors are up almost 169% in the trailing six months. However, these red-hot stats bring up the other side of the story: prospective investors may fear holding the bag. Among the recent [analyst downgrades](https://moneymorning.com/2025/10/06/a-new-dawn-for-small-cap-stocks-to-shine/) were two strikes against [SOFI](https://moneymorning.com/stocks/sofi) stock. Within the last several days, analysts at Morgan Stanley and Compass Point [downgraded](https://www.tipranks.com/stocks/sofi/forecast) the fintech giant to Sell. Raising eyebrows, Morgan Stanley’s price target of $18 implies about 32% downside, while Compass Point’s projection of $12 represents about a 55% collapse. While these forecasts sound alarmist, they would effectively bring [SOFI](https://moneymorning.com/stocks/sofi) stock down to levels last seen during this spring and early summer. From an objective standpoint, that might not be unreasonable given that [SOFI](https://moneymorning.com/stocks/sofi) stock now trades at nearly [10X](https://finance.yahoo.com/quote/SOFI/key-statistics/) trailing-12-month (TTM) sales. Around this time last year, the metric was approximately 3.4X.  On a quantitative level, [SOFI](https://moneymorning.com/stocks/sofi) stock has printed an accumulation-heavy [8-2-U sequence](https://moneymorning.com/2025/09/11/sofi-technologies-sofi-may-still-have-room-to-run-despite-impressive-rally/): eight up weeks, two down weeks, with an overall upward trajectory. Historically, this behavioral state has yielded choppy trading that typically resolves upward. Recently, [SOFI](https://moneymorning.com/stocks/sofi) printed [eight consecutive upweeks](https://moneymorning.com/2025/09/22/sofi-technologies-sofi-is-on-a-record-breaking-run-but-how-long-can-it-last/), which may have contributed the red ink witnessed in late September. Right now, though, the bulls have considered the volatility as a discount. While [SOFI](https://moneymorning.com/stocks/sofi)’s rally may stretch credulity, the empirical argument does favor the optimists. **Beat the market, without relying on brokers or biased institutions.** Email(Required) LinkedIn This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. You can unsubscribe at any time and we encourage you to read more about our [Privacy Policy](https://moneymorning.com/privacy/). ## One moment, please: Processing your submission ###### More Trending Stories from Money Morning - [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) - [Is a Buyout the Hope PayPal Investors Have Been Waiting For?](https://moneymorning.com/2026/02/27/is-a-buyout-the-hope-paypal-investors-have-been-waiting-for/) - [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) - [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) - [Anthropic Mauls CrowdStrike Again. Here's Why the Cybersecurity Stock Is a Buy](https://moneymorning.com/2026/02/25/anthropic-mauls-crowdstrike-again-heres-why-the-cybersecurity-stock-is-a-buy/) Share it: ### Popular Articles ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/03/01/why-acm-research-is-a-buy-despite-earnings/) March 1, 2026 ###### [$10,000 Invested in MercadoLibre 5 Years Ago Would Be How Much?!](https://moneymorning.com/2026/02/27/10000-invested-in-mercadolibre-5-years-ago-would-be-how-much/) February 27, 2026 ###### [Here's Why ACM Research Is a Buy Despite Its Earnings Miss](https://moneymorning.com/2026/02/27/heres-why-acm-research-is-a-buy-despite-earnings/) February 27, 2026 ###### [Axon Enterprise Stuns the Market With Huge Q4 Earnings Beat](https://moneymorning.com/2026/02/27/axon-enterprise-stuns-the-market-with-huge-q4-earnings-beat/) February 27, 2026 Notifications reCAPTCHA Recaptcha requires verification. [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/) protected by **reCAPTCHA** [Privacy](https://www.google.com/intl/en/policies/privacy/) \- [Terms](https://www.google.com/intl/en/policies/terms/)