This Fintech Stock Has 1 Dark Cloud on the Horizon
Credit and debit card-issuing company Marqeta (NASDAQ: MQ) is an up-and-coming fintech; it helps power the payment technology behind many of the popular apps you use today. But its stock has had a tough go since its June 2021 initial public offering, falling 78% from its high. That drop is not necessarily a direct reflection on the quality of the business; after all, what growth stock isn't down substantially in 2022?
But a potential problem on the horizon could keep Wall Street from rushing back to the stock, even if the broader market turns higher in the coming months. Here is what investors need to know and why Marqeta's share price could languish for a while.
I could roll out traditional valuation metrics to illustrate how cheap Marqeta's stock is; for example, the company's price-to-sales ratio (P/S) is now 6.1, the lowest since the company went public. But the stock's only been public for just over a year, so how much of a story does that tell?
Source Fool.com
