The Wise share price has been relatively calm even as peer companies have published their quarterly results. The stock is trading at 970p, which is about 5.7% below its all-time high. This values the firm at more than £9.65 billion ($13.65 billion), according to data by Hargreaves Lansdown.
Wise fundamental analysis
Wise is a relatively new publicly traded company that went public exactly one month ago. The stock jumped sharply on its first day of trading. It soared to a high of 1,030p. This brought its market cap to about $14 billion, making it more valuable than its traditional peers like MoneyGram and Western Union. However, after the initial pump, the stock has remained in a tight range as investors question its valuation.
The company also published its first trading update as a public company on July 2021. The firm said that it had reduced its overall transaction prices in the quarter while it maintained strong growth. Its volume increased from more than £10.7 billion in the first quarter of 2020 to £16.4 billion in the first quarter of this year. Its revenue jumped from more than £86.3 billion to more than £123.5 billion.
The Wise share price also reacted mildly to the relatively strong results by some of its competitors like Western Union, PayPal, and MoneyGram. All these firms warned that their growth will likely slow down in the second half of the year. In a report on Thursday, Western Union said that its total revenue rose by 16% to $1.3 billion in the quarter.
While Wise is not a cheap company, analysts believe that its stock will keep rising in the long term. They cite its strong growth and the fact that its peer companies like PayPal and Square have managed to sustain fast growth and high valuation multiples.
Wise share price forecast
The hourly chart shows that the Wise stock price has been in a tight range recently. Along the way, the stock has seen its volume dry up while the Average True Range (ATR) has declined sharply.
Therefore, this could be a calm before the storm. As such, there is a possibility that the stock will breakout higher in the next few weeks. The key levels to watch will be the all-time high of 1,030p and its post-listing low of 900p.