The Wise (LON: WISE) share price has been in a tight range as investors assess the company’s business model. The stock is trading at 995p, where it has been in the past few days. This price is slightly below the all-time high of 1,025p. According to Hargreaves Lansdown, it has a market capitalization of more than £9.89 billion, making it one of the biggest payment companies in the world.
Wise shares have been calm
Wise, formerly known as Transferwise, is one of the biggest fintech companies in the world. The company allows people to send money to their loved one locally and abroad. It has also created an online multicurrency account that gives people the ability o save money across different currencies.
This account is mostly useful to people who do business in more than one country. At the same time, the firm has an investment advisory license, meaning that it will likely become a provider of investment solutions.
Over the years, Wise has accumulated more than 10 million customers from around the world. This, has, in turn, pushed its annual revenue to about £1 billion.
Notably, like other companies like PayPal, the company has more avenues to make money. For example, it could launch its business payment solutions and even venture into the fast-growing business of buy now pay later. It could also follow Square’s move and start offering cryptocurrencies.
Wise went public in July. Since then, the share price jumped to about 1,025p. But in general, the stock has generally moved sideways as investors wait for more data. The volume of the stock has also been relatively low. Some investors are also worried about the company’s valuation considering that it is being valued at a higher valuation than companies like Western Union.
Like I have written before, and as a long-term Wise user, I believe that the company has value and that its growth will continue. One of the few concerns I have is the rising competition from firms like Paysend and WorldRemit, which could affect its margins.
Wise share price forecast
The two-hour chart shows that the Wise stock price has been in a tight range recently. At the same time, it has maintained above the important ascending trendline shown in blue. The shares are along the 25-day moving average while its volume has declined. It is also hovering along the psychological level at 1,000p.
Therefore, the outlook for the stock is neutral at this time because there is no well-defined trend. Still, the bias remains bullish so long as the price is above the ascending trendline.