Wise Share Price Makes a Major Comeback as Interest Rates Rise
- Published: 29th September 2022, 17:08
Wise share price surged to the highest level since January 19 of this year after the company published strong guidance. The stock rose to a high of 700p, which was about 145% above the lowest level this year, making it one of the best-performing companies in the UK.
Wise defies gravity
Wise, formerly known as Transferwise, has become one of the best-performing fintech companies in the past few weeks. The firm’s performance has happened in a tough period for UK companies as the British pound has collapsed to the lowest level on record.
On Thursday, the company said that it expects that its total income will rise to between 55% and 60% in 2023. It attributed that to the actions by the Bank of England (BoE), which has decided to hike interest rates several times this year. Analysts expect that the bank will hike rates by about 150 basis points this year. Wise makes a lot of money in interest income.
The firm now anticipates that its first-half revenue will increase to between 394 million pounds to 396 million pounds. This will be a 54% increase from the same period in 2022.
The statement came a few months after the company published strong results. It has over 7 million active customers and processed over 76 billion pounds in volume in the first half of the year. Its total volume has had a compounded annual growth rate of 35%.
Wise share price forecast
The daily chart shows that the Wise share price has been in a strong bullish trend in the past few weeks. In this period, it has managed to move to the 50% Fibonacci Retracement level. It has also risen above all moving averages while the money flow index has risen to the overbought level of 75. Therefore, the stock will likely continue rising as bulls target the next key resistance level at 750p. Find out how to send money using Wise.
Crispus Nyaga is a full-time financial analyst and trader with more than 7 years in the industry. He has been fortunate to work for several fintech companies, mostly from Europe, Asia, and North America. His work is published in leading platforms like Seeking Alpha, Invezz, rkdream.com InvestingCube, Capital.com, and Marketwatch. Crispus operates from a private office in Nairobi.