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Marqeta Stock Plunges on Weak Q4 Guidance
Marqeta's stock plummeted after issuing disappointing Q4 guidance, attributing the shortfall to tighter banking scrutiny and customer changes. The company's payment processing volume still shows growth.
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Simon Khalaf
- What products and services does Marqeta offer?
- Marqeta offers a card-issuing platform, digital commerce solutions for fraud detection, customized physical cards, and recently launched Marqeta Flex for the buy now, pay later (BNPL) market.
- What caused Marqeta's significant stock price drop?
- Marqeta's stock price dropped over 30% in after-hours trading due to weaker-than-expected Q4 guidance, with revenue growth projected at 10-12% compared to analyst expectations of over 17%.
- How did Marqeta's Q3 results compare to expectations?
- Marqeta's Q3 results slightly missed expectations on both revenue and earnings, but the significantly lower Q4 guidance was the main cause for the market's negative reaction.
- Despite the negative news, what positive trend did Marqeta show?
- Despite a 30%+ drop in share price, Marqeta's total processing volume increased by more than 30% year-over-year, showing continued growth in transaction volume.
- What reasons did Marqeta give for its lower-than-expected Q4 guidance?
- The company attributed the lower guidance to increased banking scrutiny and specific customer program changes, impacting their overall financial performance and investor confidence.