The downgrade from Neutral to Sell by Goldman Sachs, a major investment bank, indicates a negative outlook for Ginkgo Bioworks Holdings. The significant reduction in the price target from $3 to $1.25 suggests that the analyst believes the stock is overvalued and has limited upside potential. This news is likely to negatively impact the stock price in the short term as investors may adjust their positions based on the new rating and price target.