4. Marqeta, Inc. (NASDAQ:MQ)
Soros Fund Management’s Stake Value: $88,480,000
Percentage of Soros Fund Management’s 13F Portfolio: 1.63%
Number of Hedge Fund Holders: 20
Marqeta, Inc. (NASDAQ:MQ) is a cloud-based payments technology company that issues cards and solutions to e-commerce vendors, digital banks, tech companies, and prominent financial institutions. In Q3 2021, Soros Fund Management held 4 million Marqeta, Inc. (NASDAQ:MQ) shares, worth $88.4 million, representing 1.63% of the total 13F investments.
On February 9, Marqeta, Inc. (NASDAQ:MQ) provided financial guidance for net revenue and adjusted EBITDA for the fourth quarter ending December 31, 2021. In light of higher than expected processing volumes, the company expects to outperform the previously announced guidance for both its net revenue and adjusted EBITDA for the fourth quarter.
Barclays analyst Ramsey El-Assal lowered the price target on Marqeta, Inc. (NASDAQ:MQ) to $20 from $35 and kept an Overweight rating on the shares on January 21. The analyst remains “quite positive” on Marqeta, Inc. (NASDAQ:MQ)’s growth prospects and believes the company is well positioned as a “clean F22 beat & raise story.”
A total of 20 hedge funds were bullish on Marqeta, Inc. (NASDAQ:MQ) in the third quarter of 2021, down from 35 funds in the preceding quarter. Coatue Management is the leading Marqeta, Inc. (NASDAQ:MQ) stakeholder as of Q3 2021, with 28.4 million shares valued at $612.4 million.
Here is what Alger Spectra Fund has to say about Marqeta, Inc. (NASDAQ:MQ) in its Q4 2021 investor letter:
“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.”
