What Happened:
Shares of leading edge card issuer Marqeta (NASDAQ: MQ) jumped 9.8% today after analyst Darrin Peller of Wolfe Research upgraded the stock from Peer Perform (Hold) to Outperform (Buy), stating that the stock’s risk profile is too attractive to overlook and the market is undervaluing the business.
What is the market telling us:
Marqeta's shares are quite volatile and over the last year have had 68 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Marqeta is down 33.2% since the beginning of the year, and at $3.9 per share it is trading 66.7% below its 52-week high of $11.73 from March 2022. Investors who bought $1,000 worth of Marqeta's shares at the IPO in June 2021 would now be looking at an investment worth $128.39.
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