What Happened?
Shares of payment technology company Marqeta (NASDAQ:MQ) fell 2.3% in the afternoon session after the stock extended its weak momentum as the company provided a cautious outlook on its future profitability at a recent investor conference, noting that two major contract renewals are expected to lower future gross profit growth.
During a presentation at the Goldman Sachs Communicopia + Technology Conference, CEO Mike Milotich disclosed that the renewals are expected to lower the company's gross profit growth by 4% and its full-year growth by 2%. While the impact is projected to begin in the fourth quarter of 2025, the full effect is not anticipated until 2026. This financial forecast appears to have overshadowed the concurrent announcement that Milotich, who had been serving as interim CEO, was appointed to the role permanently. Investors seem to be focused on the prospect of slower growth, which is weighing on the stock.
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What Is The Market Telling Us
Marqeta’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 19 days ago when the stock gained 3.7% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Marqeta is up 55.8% since the beginning of the year, but at $5.81 per share, it is still trading 14.9% below its 52-week high of $6.83 from August 2025. Investors who bought $1,000 worth of Marqeta’s shares at the IPO in June 2021 would now be looking at an investment worth $190.44.
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