Sometimes timing isn’t ideal. Fintech Marqeta ( MQ -10.88% ) went public in the summer of 2021, just months before market sentiment toward most high-growth and technology stocks collapsed. The stock is down roughly 70% from its highs, making it a “loser” for just about anyone who has purchased shares.
The dirty secret of investing is that your risk in an investment is less when the share price falls! Obviously, the company needs to deliver the goods through solid execution and growth, but the risk versus reward is better when the price is lower. In Marqeta’s case, the stock price has fallen enough to create a tasty opportunity for investors.
What does Marqeta do?
Payments are a straightforward process from the consumer’s standpoint. You swipe your card, and the money moves from your bank account or credit card issuer to the merchant. But there’s more to it underneath the surface. Multiple parties receive and send information, and there’s traditionally not a lot of flexibility. It’s a binary system where the money goes in or out.