What happened

Shares of digital bank SoFi Technologies (SOFI 1.32%) traded more than 7% lower as of 10:55 a.m. ET today along with the broader market and after a large investor sold some of its stake in the company.

So what

Tech stocks were struggling this morning as investors await new inflation data tomorrow that could influence the trajectory of future interest rate hikes by the Federal Reserve. If the July reading of the Consumer Price Index (CPI) shows that inflation has peaked, the Fed may be less aggressive with rate hikes, which would greatly benefit tech stocks that have been hammered this year because of rising rates.

Additionally, after the market closed yesterday, the large Japanese conglomerate and tech investor SoftBank revealed in a filing with the Securities and Exchange Commission that the company plans to sell some or all of its holdings in SoFi. SoftBank owns more than 83.2 million shares, or roughly 9% of the company.

The news comes after SoFi last week reported second-quarter earnings results that beat analyst estimates. The company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $20.3 million in the quarter, the highest in almost two years. SoFi also raised its full-year guidance.

Now what

It's never great to see a key investor begin to unload shares, although selling shares doesn't always have to do with the performance or outlook of the company.

I am still fairly optimistic about SoFi's long-term potential. I think the valuation is still a bit high right now and that there is a lot the company still needs to improve upon, but the sale from SoftBank is not a dealbreaker for me.