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Published January 8, 2025
Investors in Marqueta were stunned when the fintech company announced its profits and revenue were far less than it led investors to expect. When angry investors rapidly sold off their Marqueta stock, the Company’s stock price dropped over 42% in a day. Some of those investors are now suing the Company to recover their losses.
Marqueta provides cloud-based platforms to the financial services industry. In May and August the Company’s executives told investors to expect profit growth of over twenty percent and revenue growth between sixteen and eighteen percent. But Marqueta’s executives should have known better, as investors would soon find out.
In November, Marqueta issued an earnings report showing profits and revenues far less than they’d led investors to expect. Marqueta’s exectuves said they “anticipated this” due to regulatory changes in banking that occurred last year. But this explanation left investors asking why Marqueta didn’t anticipate these changes when it issued the sky-high projections just a few months earlier.
Stunned investors quickly sold off their shares, sending Marqueta’s stock price plummeting. Some of those investors are now joining the lawsuit.