4. Marqeta, Inc. (NASDAQ:MQ)
IPO Date: June 9, 2021
Number of Hedge Fund Holders: 33
Marqeta, Inc. (NASDAQ:MQ) is an Oakland, California-based provider of open API card issuing platforms. The company has a headcount of over 800 employees and a presence in over 39 countries.
Marqeta, Inc. (NASDAQ:MQ) services digital banking, buy now pay later (BNPL), and on-demand delivery platforms through its solutions. The company heavily relies on Block, Inc. (NYSE:SQ), as 69% of the business comes from the San Francisco, California-based mobile payment solutions provider. Experts believe that Marqeta, Inc. (NASDAQ:MQ) could see limited growth potential during the second half of the year as clients of fintech companies have started to take a cautious approach due to the deterioration of the macroeconomic circumstances. However, the company’s fundamentals are expected to improve during the second half of 2023 as consumer discretionary spending has started to bounce back.
Marqeta, Inc. (NASDAQ:MQ) was mentioned in the Q4 2021 investor letter of Alger. Here’s what the firm said:
“Margeta 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 Margeta seeks to address through its modern payment card issuing platform, providing infrastructure and tools for building configurable payment cards. Margeta 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. Margeta’s solutions are even sought out by large financial institutions to improve their existing offerings and stay competitive with technology-focused new market entrants. Margeta 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 Margeta revenue base of crypto, truck brokerage and business-to-business clients may take time to scale.”
Overall, 33 elite funds reported owning a stake in Marqeta, Inc. (NASDAQ:MQ) during Q2 2022.
