Marqeta, Inc. (NASDAQ:MQ) is one of the The 12 Best FinTech Stocks to Buy According to Analysts. On October 13, Goldman Sachs downgraded Marqeta, Inc. (NASDAQ:MQ) from Neutral to Sell and reduced its price target from $7.50 to $5.00.
This decision comes after recent changes in Marqeta, Inc. (NASDAQ:MQ)’s relationship with Block, Inc. (XYZ), which is adding a new issuing partner and will result in Marqeta, Inc. (NASDAQ:MQ) losing processing share for new accounts. Goldman Sachs noted that Marqeta, Inc. (NASDAQ:MQ) could see a potential 2% headwind to its gross profit in 2026.
Goldman Sachs also cited fears about delays in contract renewals. This could create a 4% gross profit headwind for Marqeta, Inc. (NASDAQ:MQ) in 2026.
The investment research firm views Marqeta, Inc. (NASDAQ:MQ) as “one of the best outsourced card issuance platforms in the industry, particularly for cloud-based fintechs.” However, Goldman Sachs also flagged two main concerns. One is the company’s premium pricing, which leads to price compression with large partners. The other is increasing competition in the industry, which can hurt long-term growth.
Marqeta, Inc. (NASDAQ:MQ) is a financial technology company that provides a modern open API platform that helps businesses issue cards and process payments instantly.
While we recognize MQ’s potential as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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Disclosure: None. This article was originally published in Internal jumpsuit.