What Happened?
Shares of payment technology company Marqeta (NASDAQ:MQ) jumped 14.2% in the morning session after the company posted strong third-quarter financial results that beat revenue and guidance expectations.
The payment technology firm announced revenue of $163.3 million, up 27.6% year over year and comfortably ahead of the $148.8 million analysts had forecast. Its GAAP loss of $0.01 per share was in line with Wall Street expectations. Investors were also encouraged by the company's strong outlook. Marqeta guided for fourth-quarter revenue of around $167 million, which was 5.6% higher than analysts' projections. The results also showed significant operational improvements, with the operating margin improving to -6.4% from -33% in the same quarter last year.
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What Is The Market Telling Us
Marqeta’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for Marqeta and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 24 days ago when the stock dropped 5.1% on the news that Goldman Sachs downgraded the stock to 'Sell' from 'Neutral' and lowered its price target, citing concerns about the company's relationship with its key customer, Block. The downgrade came as analysts at the investment bank voiced worries about Marqeta's heavy reliance on Block. Goldman Sachs noted that Block's decision to add a new issuing partner could lead to Marqeta losing processing share for new accounts. This change was projected to create a potential 2% headwind to Marqeta's gross profit in 2026. The bank also pointed to delayed contract renewals as another risk. Reflecting these concerns, Goldman Sachs cut its price target on Marqeta's stock to $5.00 from $7.50.
Marqeta is up 31.8% since the beginning of the year, but at $4.92 per share, it is still trading 28% below its 52-week high of $6.83 from August 2025. Investors who bought $1,000 worth of Marqeta’s shares at the IPO in June 2021 would now be looking at an investment worth $161.04.
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