SoFi Technologies Inc. (SOFI) saw its stock price plummet 7.15% in pre-market trading on Thursday, as the fintech sector continues to face significant headwinds. The sharp decline comes amidst growing concerns about inflation, economic slowdown, and reduced demand for consumer loans, which are putting pressure on fintech companies across the board.

The downturn in SoFi's stock price aligns with a broader trend affecting fintech stocks, which have had a brutal year so far. Industry giants like PayPal and Block have seen their shares tumble more than 20% and 30% respectively this year. Adding to the pessimism, Bill Ryan of Seaport Research Partners recently reduced his 2025 earnings per share estimate for SoFi, citing economic uncertainty and potential impacts on loan pricing due to capital markets volatility.

Investors are increasingly wary of fintech valuations in the current economic climate. SoFi, in particular, is valued at nearly 50 times its 2025 earnings estimates, which may be contributing to the sell-off as market participants reassess the company's growth prospects in light of the challenging macroeconomic environment. As the fintech sector grapples with these headwinds, companies like SoFi may continue to face pressure on their stock prices in the near term.