We recently published a list of 13 Best Technology Penny Stocks to Buy Right Now. In this article, we are going to take a look at where Marqeta Inc. (NASDAQ:MQ) stands against other best technology penny stocks to buy right now.
Marta Norton, the chief investment strategist at Empower, appeared on CNBC’s ‘Squawk Box’ on March 26 to express her bullish outlook on small caps and emphasize that the market’s short-term trajectory depends on upcoming tariff decisions. The question is whether tariffs are short-term and less disruptive negotiating tools, or a disruptive and longer-lasting precursor to a shift in global trade that could address the trade deficit, and create extra revenue for the federal government. Norton explained that tariffs initially affect earnings and are then followed by the companies’ attempts to pass increased costs to consumers. However, this usually doesn’t happen due to demand elasticity and the general nature of consumers. Sectors like tech show minimal earnings revisions despite the potential cost and revenue impacts that come from retaliatory measures.
Norton advised investors to go for a balanced approach in 2025 and stated that there aren’t many areas where you can move in right now, but small caps are an exception to this sentiment. Small-cap stocks have transitioned from relatively cheap to absolutely cheap very recently. While small caps exhibit economic sensitivity, adding positions in them is relatively safer. Later, on March 29, Tony Wang, T. Rowe Price portfolio manager, joined ‘Closing Bell Overtime’ on CNBC to talk about the volatility in tech, and whether it’s a time for heightened caution or not. Wang noted that this volatility is more likely a buying opportunity than not. He observed that growth and momentum in the tech sector have been high in the past few years. The tech sector in particular recently saw two years of strong growth. He thinks that valuations haven’t yet reached capitulation levels.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the top technology penny stocks that were trading under $5 as of March 28. We then selected the 13 technology stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A financial services team at work reviewing customer data on their digital bank.
Marqeta Inc. (NASDAQ:MQ)
Share Price as of March 28: $4.29
Number of Hedge Fund Holders: 37
Marqeta Inc. (NASDAQ:MQ) operates a cloud-based open API platform for card issuing and transaction processing services. Its platform provides access to bank accounts and money movement features. It offers its solutions in verticals like financial services, on-demand services, expense management, and e-commerce enablement, as well as buy now, pay later providers.
The company’s European business is a major contributor to its overall growth. The total Q4 2024 Total Processing Volume (TPV) in Europe increased by over 100% year-over-year. The company is enhancing its program management capabilities in Europe to attract more customers who seek embedded finance solutions and match its offerings in the US. In Q4, the company secured a deal with one of Europe’s fastest-growing tech companies to provide it with commercial card processing and program management.
The company is also acquiring TransactPay, which is a European Electric Money Institution (EMI). This aims to address the regulatory challenges in the UK and Europe, where an EMI license is needed for issuing and managing electric money. This acquisition is expected to close in mid-2025 and will allow Marqeta Inc. (NASDAQ:MQ) to combine all of its offerings for customers and reduce the complexity associated with contracting multiple partners.
Overall, MQ ranks 2nd on our list of best technology penny stocks to buy right now. As we acknowledge the growth potential of MQ, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. 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 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
