Marqeta (MQ) Is Up 9.9% After Issuing Upbeat Q4 Guidance and Expanding Klarna Partnership – What's Changed

• In the past week, Marqeta reported third quarter earnings with net revenue rising to US$163.31 million and improved quarterly net loss, while also issuing an optimistic guidance for fourth quarter revenue growth between 22% and 24%.
• Klarna announced it is partnering with Marqeta to expand the Klarna Card into 15 new European markets, showcasing Marqeta's growing role in enabling international payment card programs.
• We'll explore how Marqeta's upward revenue guidance and Klarna partnership expansion influence its investment narrative and growth outlook.

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Marqeta Investment Narrative Recap

To be a shareholder in Marqeta, you need conviction in the company's ability to maintain rapid payment volume growth and diversify its client base amid intense competition and still-unproven profitability. The strong Q3 revenue and improved quarterly loss, along with upbeat Q4 guidance, reinforce the view that product innovation and international expansion are the main catalysts for near-term momentum, but reliance on a concentrated group of clients remains the core risk, and this week’s news does not materially change that dynamic. Among recent developments, the Klarna partnership expansion into 15 European markets is highly relevant as it directly accelerates platform adoption and cross-border reach, two factors that support Marqeta's customer acquisition and addressable market, underpinning the short-term growth catalyst called out in management’s guidance. However, investors should also be mindful that Marqeta’s major customer concentration remains largely unchanged…

Read the full narrative on Marqeta (it's free!)

Marqeta's outlook anticipates $900.6 million in revenue and $47.9 million in earnings by 2028. This implies a 17.6% annual revenue growth rate and a $112.6 million increase in earnings from the current -$64.7 million.

Uncover how Marqeta's forecasts yield a $6.20 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Six private investors in the Simply Wall St Community see Marqeta’s fair value between US$3.70 and US$8.00 per share. While some highlight expanding product innovation as a key driver for future growth, others point out that high client concentration could pose outsized risks to Marqeta’s financial stability.

Explore 6 other fair value estimates on Marqeta - why the stock might be worth as much as 64% more than the current price!

Build Your Own Marqeta Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Marqeta research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free Marqeta research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Marqeta's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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