Payment Fintech Company Marqeta Remains Volatile

Many companies have already published their figures for the third quarter. However, not all of them yet. This week, the US fintech company Marqeta will reveal its results. The group is active in a growth market and counts well-known companies such as Square or Coinbase among its customers. However, currently, the risks could be greater than the opportunities.

Marqeta is a payment service provider that also issues white-label credit cards. Companies can also create customized virtual cards online for their customers and add the desired bonus system at the same time. As cash continues to retreat and e-commerce booms at the same time, there are great opportunities for companies in the payment sector. At the same time, Marqeta is constantly entering into new collaborations, such as the most recent one with Coinbase.

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Well-known players acquired

After the IPO at the beginning of June at $27.00, Marqeta’s shares slid, but at the end of October, the price reached a new all-time high of $43.8. What happened? Among other things, the company is now cooperating with Coinbase. In the process, Marqeta issues Visa debit cards for Coinbase, customers can also load them with cryptocurrencies and use them in payment transactions. They are also working more closely with Uber and Bill.com.

Beware of numbers

On Wednesday, November 10th, Marqeta will now publish its Q3 figures. It will probably be difficult to compare them with the same quarter last year, as this was certainly an exceptional period due to the pandemic. The main customer Square already weakened during the presentation of the figures and missed the forecast for revenues. The consensus expected revenue growth of 42 percent for Marqeta.

In the long term, the opportunities for Marqeta remain high, but a new entry before the figures is not urgent. Investors stay with it and note the stop at $18.00. All others wait and see, because due to the high valuation, the share is particularly sensitive to deviations of the figures from the consensus. Since growth at important customers and competitors has already weakened, the risk that Marqeta will also be affected is high.

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(Featured image by Jonas Leupe via Unsplash)

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