The Wise share price has done well in the past few weeks as the company’s growth continues. It rose to a high of 1,055p on Tuesday, its highest level since February 2021, up by 24% from the lowest point in April, and 84% above its lowest level in 2024.
Wise business is doing well
Wise is a top fintech company that lets people send and receive money internationally. It is also a digital bank, allowing users to save money in over 40 currencies. In some countries, the company offers a debit card and other solutions, such as the ability to invest in stocks and invest in yield-bearing services.
Wise business has continued doing well over the years because of its lower fees, transparency, and innovation, which have seen it add more services. This growth has happened at a time when competition in the industry is rising, with companies like PayPal and Remitly gaining share.
Also, the company is facing competition from the cypto industry as the role of stablecoin has gotten more pronounced. Visa estimates that stablecoins have transacted over $32 trillion in the last twelve months, while the active unique addresses has jumped to over 188 million.
The most recent results showed that Wise business did well in the first half of its financial year as its revenue jumped by double digits. Its revenue rose by 19% to £591 million, while its underlying operating profit soared by 52% to £156 million. The profit before tax soared by 57% to £147 million.
This growth is impressive considering that other companies in the fintech industry, like PayPal and Block, are no longer growing as they did in the past.
In a trading statement in January, Wise said that its gross transaction growth jumped by 24% in the third quarter as the number of users soared to 9 million. Cross-border transaction volume rose by 24%.
Read more: PayPal stock price analysis: buy, sell, or hold ahead of earnings?
Wise’s cross-border volume rose to £37.8 billion, while the underlying income rose to £349 million. This growth will likely continue as the company continued to ink partnerships with other firms. For example, it has inked a partnership to power SC Remit, the cross-border payment solution by Standard Chartered, a large emerging-market focused bank.
Further, there are signs that Wise is fairly valued. SeekingAlpha data shows that it has a price-to-sales ratio of 24, which is balanced considering that it is still having a double-digit growth rate. Also, the company has a large total addressable market, both from the retail and corporate perspectives. For example, Wise has less than 5% market share in the £2 trillion a year peer-to-peer payments industry. It also has a small market share in the small and large businesses’ payment solutions.
Wise share price analysis
The daily chart shows that the Wise stock price has been in a strong uptrend in the past few days. It has moved from a low of 830p on April 7 to a high of 1,030.
The stock has formed an inverse head and shoulders pattern, a popular bullish sign. It has also remained above the 50-day and 100-day Exponential Moving Averages (EMA) as top oscillators have pointed upwards.
Therefore, the stock will likely continue rising as bulls target the all-time high of 1,140p, which is about 10% above the current level. A drop below the support at 996p will invalidate the bullish outlook.
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