Marqeta (MQ 0.92%) came out hot on Monday, as the stock price soared as high as 8% in the morning session. As of 12:22 p.m. ET, it was up roughly 6.3% to $6.91 per share. The stock price is still down about 60% year to date.
It was a good start to the week for the major indexes, which were all up sharply on Monday morning, with the Nasdaq leading the way, up 3.2% as of 12:22 p.m. ET. The S&P 500 was up 2.5%, while the Dow Jones Industrial Average was up over 500 points, or 1.7%.
Marqeta is a fintech company that provides a platform and the digital infrastructure on which its customers can create and issue their own payment cards, as well as authorize and settle transactions. Its largest customer is Block (SQ 16.13%), as it provides the infrastructure for its virtual debit card.
So, the fact that Block was soaring on Monday, up more than 9% at around 12:22 p.m. ET, certainly helped push Marqeta higher.
But there were several positive developments in the market on Monday that sent stock higher. A major catalyst for the entire market occurred as the British pound jumped roughly 2% higher on the news that all proposed tax cuts by Prime Minister Liz Truss would be scrapped.
Marqeta may have also gotten a boost from a solid earnings report from Bank of America, which beat earnings estimates on rising interest income and bond trading.
One concern about Marqeta stems from the fact that some two-thirds of its revenue comes from Block. Many analysts see this as the company being too reliant on Block. It has been able to lower that percentage, but it is still high.
However, on days like this, when Block is soaring, it will give Marqeta an added boost. Unfortunately, with Block down 65% YTD, these good days have been few and far between this year.
The better-than-expected earnings posted by banks at the start of third-quarter earnings season is a good sign, particularly for the financial sector. A key from Bank of Americaʻs report was news that loans increased 12% year over year, which means borrowing and lending is still fairly robust.
However, with more interest rate hikes coming and a possible recession, that could potentially slow. An economic slowdown poses problems for Marqeta as a payment stock, so uncertainty remains.