Marqeta Shares Soar 2.04% on Strong Earnings

Marqeta (MQ) shares surged 2.04% today, marking an eighth consecutive day of gains, with an impressive 31.58% increase over the past eight days. The stock price reached its highest level since November 2024, with an intraday gain of 3.27%.

The strategy of buying MQ shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.57% gain. This suggests that the strategy captured some of the subsequent upward movement in the stock price, although the returns were not significantly high. The 5-year compound annual growth rate (CAGR) was 1.85%, indicating a steady, if modest, growth trajectory.

Marqeta's recent earnings report, released on May 7th, played a significant role in the stock's upward trajectory. The company reported an earnings per share (EPS) of ($0.02), surpassing the expected ($0.05). Revenue for the quarter was $139.07 million, exceeding the consensus estimate of $135.66 million and marking a 17.9% year-over-year increase. This strong financial performance has bolstered investor confidence in the company's growth prospects.

Analysts have also been bullish on Marqeta, with several research firms adjusting their price targets. Barclays raised its target from $4.00 to $5.00, while UBS Group increased its target from $4.75 to $5.00. These upward revisions reflect a positive outlook on the company's future performance and have likely contributed to the stock's recent gains.

Marqeta's positive stock trend, with gains on seven consecutive trading days as of May 14, 2025, further underscores the market's optimism. The company's strong earnings performance, coupled with favorable analyst sentiment, has created a supportive environment for the stock's continued upward movement.