Marqeta Due Dilligence

Introduction: Marqeta is a modern card issuing platform and processor that allows companies to devolop their own credit cards on an open API platform. An example of their service in action is their partnership with Door Dash which allows Door Dash couriers to use the Door Dash credit card only at the restaurant their supposed to be at and the price their supposed to be paying. This provides Door Dash not just a credit and payment system but it also eliminates fraud. Marqeta makes their revenue on interchange. Interchange is a percentage of each transaction that Marqeta is taking which is currently 0.45%. Institutional Movement: Price Target: (9 Analysts) Low $29, Median $35, Average $34, High $37 In Q2 many large funds and institutions bought large positions in Marqeta such as Soros Fund Management, Virvituan Partners, Goldman Sachs and Morgan Stanley among others. Moat: Marqeta's main moat is that their API platfrom allows for customization of credit cards (such as the Door Dash example) is very developer friendly. Because of this they have been able to earn customers such as Affirm, Afterpay, Klarna, Doordash, Uber, Instacart, Coinbase, JP Morgan, Square, Goldman Sachs (Marcus) and Google among others. Growth Oppurtunity: Marqeta processed $60 billion in transactions in 2020. This accounts for less than 1% of the market. Many of Marqeta's customers are poised for explosive growth such as Affirm who recently partnered with Amazon to provide BNPL (Buy Now Pay Later) on Amazon's eccomerce platform. As well Marqeta's recent partnership with Google to power the Google Pay Card should lead to substantial revenue. Futhermore Marqeta's relationship with many fast growing companies as mentioned earlier should lead to fast growing revenue in the future.

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Marqeta Due Dilligence

bullish

Introduction:

Marqeta is a modern card issuing platform and processor that allows companies to devolop their own credit cards on an open API platform. An example of their service in action is their partnership with Door Dash which allows Door Dash couriers to use the Door Dash credit card only at the restaurant their supposed to be at and the price their supposed to be paying. This provides Door Dash not just a credit and payment system but it also eliminates fraud.

Marqeta makes their revenue on interchange. Interchange is a percentage of each transaction that Marqeta is taking which is currently 0.45%.

Institutional Movement:

Price Target: (9 Analysts) Low $29, Median $35, Average $34, High $37

In Q2 many large funds and institutions bought large positions in Marqeta such as Soros Fund Management, Virvituan Partners, Goldman Sachs and Morgan Stanley among others.

Moat:

Marqeta's main moat is that their API platfrom allows for customization of credit cards (such as the Door Dash example) is very developer friendly. Because of this they have been able to earn customers such as Affirm, Afterpay, Klarna, Doordash, Uber, Instacart, Coinbase, JP Morgan, Square, Goldman Sachs (Marcus) and Google among others.

Growth Oppurtunity:

Marqeta processed $60 billion in transactions in 2020. This accounts for less than 1% of the market. Many of Marqeta's customers are poised for explosive growth such as Affirm who recently partnered with Amazon to provide BNPL (Buy Now Pay Later) on Amazon's eccomerce platform. As well Marqeta's recent partnership with Google to power the Google Pay Card should lead to substantial revenue. Futhermore Marqeta's relationship with many fast growing companies as mentioned earlier should lead to fast growing revenue in the future.

read-time
1 min
29.67
Target Price
8/ 10
Confidence
3+ Years
Timeframe
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Earnings Release
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News
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SEC
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