Marqeta slumps after downbeat Q4 revenue growth forecast

Marqeta

05/11/2024 16:24

(Updates)
** Shares of card issuer Marqeta  MQ.O  drop 40% to $3.57 on
downbeat Q4 revenue growth forecast
    ** After market close on Monday, MQ forecast Q4 net revenue
growth of between 10% and 12%, compared with Wall Street
expectations of 17.4% - LSEG data
    ** KeyBanc downgrades MQ to "sector weight" from
"overweight" rating, citing co's substantial revision of 2024
profit forecast and initial 2025 growth forecast below Wall
Street estimates 
    ** Brokerage KeyBanc says regulatory scrutiny of Marqeta
bank partners has created logjam of new card programs 
    ** Including KeyBanc, at least three brokerages downgraded
the stock after results
    ** Six of 17 brokerages rate MQ stock "buy" or higher, 11
"hold"; their median PT is $5 - LSEG data
    ** Including session's moves, stock down ~49% YTD

 (Reporting by Prakhar Srivastava in Bengaluru)
 ((Prakhar.srivastava2@thomsonreuters.com))