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What Wall Street Thinks About Marqeta (MQ)

Marqeta, Inc. (NASDAQ:MQ) is one of the 13 Best American Penny Stocks to Invest In. On February 17, JPMorgan initiated coverage on Marqeta, Inc. (NASDAQ:MQ), giving the stock an Overweight rating and setting the price target at $6.

The company is scheduled to report Q4 results on February 24. JPMorgan expects 16% gross profit growth for Marqeta, Inc. (NASDAQ:MQ), which is about one percentage point higher than current Street estimates. The research firm also expects the company to guide for mid-teens gross profit growth along with solid adjusted EBITDA generation.

Some investors are worried that Cash App could diversify processors, which may affect Marqeta, Inc.’s (NASDAQ:MQ) business. However, JPMorgan believes that this risk is offset by growth in other parts of the company’s business, especially in Europe and in lending and buy now, pay later services.

Previously, on January 8, Mizuho downgraded Marqeta, Inc. (NASDAQ:MQ) from Outperform to Neutral and cut its price target from $8 to $4.50, citing concerns about rising competition in the payment processing industry.

On January 8, Wolfe Research also downgraded Marqeta, Inc. (NASDAQ:MQ) from Outperform to Peerperform. These updates come as the company’s Cash App Card’s new issuance transitioned to Bancorp, which could affect future 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.

READ NEXT: 15 AI Stocks That Are Skyrocketing and 12 Best Oil and Gas Stocks to Buy Right Now.

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

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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Put another way, that’s roughly equal to:

  • 175 Teslas
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  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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