20 Fintech Stocks Riding the AI Wave Higher

12. Marqeta, Inc. (NASDAQ:MQ)

Number of Hedge Fund Holders: 35

Marqeta, Inc. (NASDAQ:MQ) is a leading fintech company that operates a cloud-based open application programming interface (API) platform, offering card issuing and transaction processing services. The company’s solutions cater to various sectors, including financial services, e-commerce, and buy now, pay later (BNPL) systems. Marqeta is particularly innovative in fintech due to its use of artificial intelligence (AI) to enhance its transaction processing capabilities and deliver tailored solutions. Marqeta’s AI-driven platform is designed to help businesses manage payments efficiently, optimizing processing times and reducing operational overhead.

Marqeta, Inc. (NASDAQ:MQ) has caught the attention of analysts for its unique position in the payments industry. On September 9, 2024, Goldman Sachs maintained its Neutral rating on Marqeta with a price target of $6.00. The firm highlighted Marqeta’s potential for international expansion and its strong booking trends, noting these as positive signs for the company’s future growth. Analysts also pointed out the company’s growth trajectory outside its relationship with Block, Inc. (formerly known as Square), and emphasized its credit opportunities in consumer and commercial markets.

AI plays a significant role in Marqeta, Inc. (NASDAQ:MQ) operations. The company has developed AI-driven tools to personalize its offerings, making it more adaptive to the needs of its clients. Marqeta’s AI solutions are particularly effective in the BNPL space, where AI assists in credit issuance, transaction analysis, and customer behavior prediction. During its Q2 2024 earnings call, the company revealed plans to continue expanding its AI capabilities, especially in the commercial and financial services sectors, further enhancing its ability to process large volumes of transactions efficiently.

Marqeta, Inc. (NASDAQ:MQ) Q2 2024 earnings results were mixed. The company reported a 32% increase in total processing volume (TPV), reaching $71 billion, but also saw a 46% drop in net revenue due to changes in its Cash App contract. Despite these challenges, Marqeta continues to focus on innovation, including partnerships with Varo Bank and Zoho, and its certification by Visa for flexible credential support. This combination of AI innovation and strategic growth positions Marqeta, Inc. (NASDAQ:MQ) as a key player in the fintech sector.