Goldman Sachs Downgrades Marqeta (MQ) to Sell, Cuts Price Target

Marqeta, Inc. (NASDAQ:MQ) is one of the 12 Best Fintech Stocks to Buy According to Analysts. On October 13, Goldman Sachs downgraded Marqeta, Inc. (NASDAQ:MQ) from Neutral to Sell and lowered its price target from $7.50 to $5.00

This decision comes after recent changes in Marqeta, Inc.’s (NASDAQ:MQ) relationship with Block, Inc. (XYZ), which is adding a new issuing partner and that will result in Marqeta, Inc. (NASDAQ:MQ) losing processing share for new accounts. Goldman Sachs pointed out that Marqeta, Inc. (NASDAQ:MQ) could see a potential 2% headwind to gross profit in 2026.

Goldman Sachs Downgrades Marqeta (MQ) to Sell, Cuts Price Target

Goldman Sachs also mentioned fears about delayed contract renewals. This could create a 4% gross profit headwind for Marqeta, Inc. (NASDAQ:MQ) in 2026.

The investment research firm sees Marqeta, Inc. (NASDAQ:MQ) as “one of the best outsourced card issuance platforms in the industry, particularly for cloud-based fintechs.” However, Goldman Sachs also pointed out two main concerns. One is the company’s premium pricing, which leads to price compression with big partners. The other is growing competition in the industry, which can hurt long-term growth.

Marqeta, Inc. (NASDAQ:MQ) is a financial technology company that provides a modern open API platform that helps businesses instantly issue cards and process payments.

While we acknowledge the potential of MQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MQ and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.