Wise (LON: WISE) share price remained in a tight range on Tuesday after the company published the latest financial results. The stock was trading at 610p, which was slightly below October’s high of 727p. It remains about 114% above the lowest level this year.
Half-year results
Wise is a leading fintech company that makes it easier and cheaper for people and companies to move money internationally. It has millions of customers around the world and is a major competitor of technology companies like Paysend and WorldRemit.
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Wise published its half-year results on Tuesday. According to the management, the firm’s revenue rose by 55% to £256 million to £397 million. Its total income jumped by 63% to £416 million while profit before tax surged to £51.3 million. Free cash flows increased by 33% to £78.3 million.
Wise benefited from higher transaction volume and interest rates. Its total volume rose to £51.3 billion while net interest income n customer balances rose to £18.7 million. Interest rates have risen sharply in the UK this year as the Bank of England attempts to battle inflation.
Wise share price has been one of the best-performing in the FTSE 250 and FTSE 100 as demand for its services has risen. Further, with interest rates rising, the company’s deposits have continued to attract interest. In a statement, the firm’s CEO said:
“And while we had to increase prices on some routes, we were able to decrease fees on others, enabling us to limit the impact of more volatile markets. As a result, our average fee today is 0.64%.”
Still, the company is facing significant challenges. There has been a wide sell-off in tech stocks, with companies like PayPal and Block crashing by over 50%. It is also under investigation by the Financial Conduct Authority into its CEO’s tax payments.
Wise share price forecast
The daily chart shows that the Wise stock price has been in a strong recovery in the past few months. The rally saw it reach the 50% Fibonacci Retracement level. Recently, however, the stock has pulled back while the Relative Strength Index (RSI) has formed a bearish divergence pattern.
Wise shares will likely continue rising as buyers target the key resistance level at 732p. A move above this resistance will mean that bulls have prevailed, which will push it above 800p. A drop below the support at 551p will invalidate the bullish view.
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