Marqeta (MQ)

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

MQ provides transaction processing solutions for different verticals within the financial sector, while PAY operates as a fintech company that provides digital banking solutions to gig economy workers. Both are classified as financial services industries but are not direct competitors.

MQ’s revenue has declined meaningfully in recent years, while the company still operates at a loss. MQ has a strong balance sheet with $1.1B in net cash (compared to its market cap of $1.9B), and the company is also repurchasing shares aggressively. That being said, the consensus estimate does not expect MQ to be profitable anytime soon. Its partnership with some large players does not make the company attractive overnight. We think if the company manages to return to stronger growth, it may look attractive, other than that we think there are better opportunities in the current market. 
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options It dropped from $37 to $8.50 today. It sees a buyer of 10,000 of the June 10 calls at 65 cents. Interesting trade--was looking for a bounce for this stock.

You don't want this stock as interest rates raise.