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.
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
Wise chart by TradingView
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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