What Happened?
Shares of payment technology company Marqeta (NASDAQ: MQ) fell 5.1% in the afternoon session after Goldman Sachs downgraded the stock to 'Sell' from 'Neutral' and lowered its price target, citing concerns about the company's relationship with its key customer, Block.
The downgrade came as analysts at the investment bank voiced worries about Marqeta's heavy reliance on Block. Goldman Sachs noted that Block's decision to add a new issuing partner could lead to Marqeta losing processing share for new accounts. This change was projected to create a potential 2% headwind to Marqeta's gross profit in 2026. The bank also pointed to delayed contract renewals as another risk. Reflecting these concerns, Goldman Sachs cut its price target on Marqeta's stock to $5.00 from $7.50.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Marqeta? Access our full analysis report here.
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 3 days ago when the stock dropped 2.7% as President Trump threatened to increase import taxes on Chinese goods, reigniting trade war fears. The threat was in response to China's move to restrict its exports of rare earth minerals, which are critical to high-tech manufacturing in the U.S. The unexpected announcement shattered a monthslong calm on Wall Street, sending major indices tumbling. The S&P 500 dropped around 1.3%, while the tech-heavy Nasdaq Composite fell 2.7%. Investors reacted by selling off stocks, particularly in the technology and retail sectors, amid concerns that escalating trade tensions could disrupt global supply chains and increase costs for companies.
Marqeta is up 26.5% since the beginning of the year, but at $4.72 per share, it is still trading 30.9% 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 $154.65.
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