SoFi Technologies Inc. (SOFI) saw its stock price plummet 9.95% in pre-market trading on Thursday, as the fintech sector faces significant headwinds. The sharp decline comes in the wake of President Donald Trump's announcement of reciprocal tariffs on U.S. trade partners and growing concerns about inflation and economic slowdown, 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 challenging 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. The renewed worries about inflation due to tariffs and growing fears of an increasingly sluggish U.S. economy could reduce demand for consumer loans, further impacting companies like SoFi. As the fintech sector grapples with these headwinds, SoFi and its peers may continue to face pressure on their stock prices in the near term.