Marqeta Shares Fall 40% Due to Regulatory Delays and Q4 Forecast
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In a record plunge, shares of Marqeta Inc. fell more than 40% after disappointing fourth-quarter guidance left investors scrambling.
"Heightened regulatory scrutiny has delayed the timelines for getting clients card programs up-and-running," Chief Financial Officer Mike Milotich said on a conference call Monday after Marqeta released third-quarter results.
Card launches that were planned for the third quarter have been pushed into the fourth and into early 2025, affecting gross profit, he added. In the first half of 2024, the time it took to launch a client program went from an average of 150 days to over 200 days.
“That just gives you a little more color on sort of the magnitude of what’s happening,” Milotich said on the call. “We had 15 programs that were delayed on average of 70 days.”
Marqeta, which stepped into the public arena in 2021, saw its stock plummet to as low as $3.52, marking a stark 50% decline for the year. Analysts quickly responded: JPMorgan Chase & Co., Morgan Stanley, and Mizuho all cut price targets, with Mizuho’s Dan Dolev calling this quarter “perhaps the most disappointing quarter in Marqeta’s short history.”
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