We recently compiled a list of the 12 Best Tech Stocks to Buy Right Now Under $10. In this article, we are going to take a look at where Marqeta Inc. (NASDAQ:MQ) stands against the other tech stocks under $10.
Our list today highlights stocks that are priced under $10 and can offer opportunities for growth. These stocks offer diversification away from the typical large and mid-cap names with the use of lower capital. These stocks often belong to companies that are trying to create niche businesses or are in various stages of product evolution, including emerging growth firms and established businesses, giving tough competition to larger rivals. In our view, this space has the potential for high returns, particularly if these companies can successfully execute their business strategies and capitalize on market trends.
In the technology sector, many undervalued stocks are well-positioned to benefit from the ongoing trends of digital transformation, and transition to cloud and AI. Companies offering innovative software solutions, cybersecurity, and cloud services are anticipated to thrive as businesses continue to invest in technology to enhance their competitive position and security. By identifying promising companies in these areas, investors can potentially achieve good returns although with a little higher risk. That said, we believe that stock selection remains crucial in the small-cap space due to the volatility of these names. For comparison, the S&P SmallCap600 Index has underperformed the broader S&P500 Index over the last 3, 5, and 10 years which indicates that you might not get enough returns if you take a broader approach.
The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide. The integration of AI and ML is revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations globally are undergoing digital transformations to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and services.
Our Methodology
To shortlist the 12 Best Tech Stocks to Buy Right Now Under $10, we screened technology stocks with current share price below $10. We overlaid this criterion with additional criteria of market capitalization of at least $300 million and a potential upside of greater than 10%. The stocks were then arranged in ascending order of the number of hedge fund holders for each company, based on hedge fund data from Insider Monkey’s database.
Note: all pricing data is as of market close on February 6.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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A financial services team at work reviewing customer data on their digital bank.
Marqeta Inc. (NASDAQ:MQ)
Current Market Price: $3.79; Upside Potential: 32%
Number of hedge funds: 33
Marqeta Inc. (NASDAQ:MQ) is a payment processing platform specializing in card issuing and payment solutions and provides a single, global, cloud-based, open API platform for these services. The company offers a flexible and scalable infrastructure, enabling businesses to create tailored payment experiences for their customers. Its platform supports a broad spectrum of payment methods, including both virtual and physical cards, and is designed to facilitate seamless transactions across various sectors, such as fintech, e-commerce, and retail.
In its Q3 2024 earnings report, Marqeta Inc. (NASDAQ:MQ) announced net revenue of $128 million, marking an 18% year-over-year (YoY) increase. The gross profit also rose by 24% YoY, with margins expanding by 300 basis points to 70%, indicating significant profitable growth and improved operating leverage. Total Processing Volume (TPV) surged 30% YoY to $74 billion, showcasing the company’s benefit from the increasing demand for digital payment solutions as businesses shift towards cashless transactions.
On January 22, 2025, Marqeta Inc. (NASDAQ:MQ) revealed its deal to power fintech company Trading 212’s expansion into 20 countries across continental Europe. The company supports the Trading 212 card, a debit card that enhances Trading 212’s customer engagement and relationship with over 3 million users by allowing transactions on the platform with zero foreign exchange and account fees.
Mukid Chowdhury, CEO of Trading 212, stated:
“Marqeta really simplified the process of launching in new countries, allowing Trading 212 to expand quickly and capitalize on our growing momentum in Europe. We’re aiming to unlock the stock market, giving over 3 million customers in the UK and Europe access to investing capabilities that haven’t been easily accessible in the past. The Trading 212 card, powered by Marqeta, is an extension of our brand and helps keep Trading 212 top of mind for our customers in their day-to-day spending.”
Overall MQ ranks 2nd on our list of the best tech stocks to buy under $10. While we acknowledge the potential of MQ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
Disclosure: None. This article is originally published at Insider Monkey.