Marqeta Inc. - MQ
Will an accounting change lead to some revelations?
Back on August 9th 2023 shares of Marqeta (MQ) surged 17% to $5.82 on the news that they had renewed their contract with Block Inc. (formerly known as Square (SQ)). According to various news reports, the contract renewal removed a “huge overhang” in the stock which had basically made the stock “un-investable.” At the time of the announcement, Block (SQ) was responsible for 78% of MQ’s Q2 2023 revenues, and that concentration percentage had been rising every quarter for the last year and a half. During FY 2022, 2021, and 2020, the percentages were 71%, 69%, and 70% respectively, so if revenue concentration was a problem, it appeared only to be getting worse. Well, Block figured out a pretty destructive way to solve that problem for them.