10 Best Tech Stocks To Buy Right Now Under $10

5. Marqeta Inc. (NASDAQ:MQ)

Number of Hedge Fund Holders: 35

Share Price as of September 10: $4.92

Marqeta Inc. (NASDAQ:MQ) is a financial technology company that provides a modern card-issuing and payment processing solutions platform. It offers a flexible, modular platform that allows businesses to create and manage their own card programs, from debit and credit cards to prepaid cards. This company is the behind-the-scenes partner for companies that want to offer their customers financial services.

Recently, Varo Bank, with 5 million cards, chose Marqeta Inc. (NASDAQ:MQ) for card processing. Varo will migrate its customers to the platform in 2025 for a 5-year contract. It also signed Zoho, a global technology company, as a partner. They chose the company for its expertise in launching card solutions for expense management.

Yet, the revenue for the company decreased by 45.80%% year-over-year to $125.27 million mainly due to a change in how the company reports revenue from Cash App. 2024 will be the last quarter that the Cash App renewal affects the year-over-year comparison. Some of this decline was offset by the suite of risk solutions such as 3DS and risk control, which increased by 61% year over year.

One-third of consumers surveyed said they only use digital banks, with 63% of 18-to-34-year-olds saying they would consider using non-traditional financial services. This has helped modern banks gain market share. The platform has seen strong growth in financial services transactions, excluding Cash App. It has a proven track record of serving large businesses and this positions the company for growth.

In May, the company bought back 11 million shares at an average price of $5.39 for a total of $59 million. Right now, 35 hedge funds hold long positions in the company, the highest stake is valued at $52,766,854 by Renaissance Technologies.