The Wise share price is in the spotlight after the company published strong quarterly results. The stock jumped to a high of 400p, the highest point since May 5th of this year. It has risen by more than 31% from the lowest level this year, bringing its market cap to more than 4 billion pounds.
Transferwise earnings
Wise, formerly known as Transferwise, is a London-based fintech company that provides money transfer services to individuals and businesses. Its primary service allows people to send money to their loved ones. It also has a borderless service that lets costumes have an account with multiple currencies. In a statement, the company said that its revenue in the year to March 31st jumped by 33% to 559.9 million pounds. Profit before taxes rose by 7% to 43.9 million.
Wise is also accelerating its growth path. In a statement, the company said that it entered new markets like Canada, Brazil, and Malaysia. Still, the concern is that the company’s business will struggle as inflation jumps around the world. As a result, people will reduce the amount of money they send to their loved ones.
Wise share price is rising a day after the FCA started an investigation to the company’s CEO, Kristo Kaarman, on tax charges. The investigation relates to a tax bill of £720k for the 2017 to 2018 year. The HMRC fined him £365,651. Therefore, the FCA is investigating Klaamarn because of his job as the CEO of a financial services company. As such, there is a possibility that he will be forced out.
Wise share price forecast
The four-hour chart shows that the Wise stock price jumped and then pulled back after the company published strong earnings. As shown below, the shares tested the key resistance level at 389p, which was the highest level in June. In addition, it has moved slightly above the 25-day and 50-day moving averages, while the Stochastic Oscillator moved slightly below the overbought level.
Therefore, the stock will likely continue falling as bears target the lower side of the channel at 300p. However, a move above the resistance level at 400p will invalidate the bearish view because it will signal that there are more buyers in the market.
