Shares of Marqeta (MQ -1.91%), a card issuer and payment processor, were soaring today on no company-specific news. Instead, investors are continuing their bullish outlook on the stock after several banks reported better-than-expected financial results this week.
Investors are betting that the latest quarterly results from a handful of banks are an indicator that the economy may be stronger than previously thought. As a result, Marqeta's stock is soaring 9.2% as of 12:57 p.m. ET.
Earlier this week, Bank and America and Bank of New York Mellon both reported quarterly financial results that outpaced analysts' consensus estimates. That was welcome news by many investors in the financial sector. The good times kept coming when Goldman Sachs reported third-quarter revenue and earnings that beat the consensus estimates as well.
Strong bank earnings helped lift Marqeta's stock earlier this week, and it appears that investors are continuing their optimism on that news.
Marqeta shareholders may also be taking into account that major technology companies, including Netflix, AT&T, and IBM, reported better-than-expected quarterly results this week. While the tech companies aren't in the same sector as Marqeta, investors have been on the lookout for any signs that the economy is still in good shape.
The strong results from the tech companies -- paired with solid results from a handful of banks -- are boosting investor sentiment.
Marqeta shareholders will get a clearer picture of how the company is doing when it reports its third-quarter financial results on Nov. 9.
Investors should keep in mind that with inflation still at a near 40-year high and the Federal Reserve poised to raise interests rate again in November and December, there could be much more volatility from Marqeta's stock in the near term.