In this article, we discuss 5 fintech stocks getting hammered amid economic weakness. If you want to see more stocks in this selection, check out 10 Fintech Stocks Getting Hammered Amid Economic Weakness.
5. Marqeta, Inc. (NASDAQ:MQ)
YTD Share Price Decline as of July 28: 48.06%
Number of Hedge Fund Holders: 39
Marqeta, Inc. (NASDAQ:MQ) is a California-based company that operates a cloud platform offering card issuing and transaction processing services to developers and entrepreneurs. As of July 28, Marqeta, Inc. (NASDAQ:MQ) stock has plummeted about 48%. On June 17, Mizuho analyst Dan Dolev maintained a Buy rating on Marqeta, Inc. (NASDAQ:MQ) with a $12 price target. He said it was “encouraging” to see Marqeta, Inc. (NASDAQ:MQ)’s “relative recession resiliency, progress in disrupting the credit issuer processing market, and awareness that profits matter to investors”. The analyst also reaffirmed that resolving key overhangs could help drive shares of Marqeta, Inc. (NASDAQ:MQ).
Among the hedge funds tracked by Insider Monkey, 39 funds were bullish on Marqeta, Inc. (NASDAQ:MQ) at the end of the first quarter of 2022, with collective stakes worth about $959 million. Mick Hellman’s HMI Capital featured as the largest stakeholder of the company, with 25.6 million shares valued at roughly $283 million.
Here is what Alger Spectra Fund has to say about Marqeta, Inc. (NASDAQ:MQ) in its Q4 2021 investor letter:
“Marqeta facilitates the implementation of digital payment technologies. It is a Positive Dynamic Change beneficiary in the digital payments industry. We believe as more commerce is conducted digitally, the digitization and transformation of the payments ecosystem is needed, which Marqeta seeks to address through its modern payment card issuing platform, providing infrastructure and tools for buiqding configurable payment cards. Marqeta offers issuer processor services and acts as a card program manager. Its platform creates customized payment cards that provide innovative payment experiences for their clients’ customers and end users.
Marqeta has emerged as a card issuing platform category leader in many disruptive verticals, including on-demand delivery, alternative lending, expense management, disbursement, digital remittances, and digital banks. Marqeta’s solutions are even sought out by large financial institutions to improve their existing offerings and stay competitive with technology-focused new market entrants. Marqeta detracted from performance despite achieving strong revenue growth with higher gross profitability and an expanded customer base in the third quarter. We believe the expiration of a lock up period and the company facing tough comparisons resulting from COVID-19 stimulus payments having boosted consumer spending contributed to the underperformance of Marqeta shares. Additionally, the still small footprints within the Marqeta revenue base of crypto, truck brokerage and business-to-business clients may take time to scale.”
