Wise share price continued its strong rally this week after the company published strong financial results. It also jumped after announcing a major strategy shift that will see it change its primary listing from London to the US. Its stock jumped for nine consecutive weeks and is up by over 40% from its lowest point this year.
Why Wise share price is surging
The Wise stock price is in a strong trajectory after the management announced the plan to change the primary listing from London to the US. This is a major blow to the London Stock Exchange, which has lost several prominent companies like Flutter and Ashtead.
The company hopes that listing in the US will help it become a well-known brand in the country. The listing will also help it get a deeper liquidity since the US market is more active than the US. The statement said:
“A dual listing would also enable us to continue serving our UK-based Owners effectively, as part of our ongoing commitment to the UK. The UK is home to some of the best talent in the world in financial services and technology, and we will continue to invest in our presence here to fuel our UK and global growth.”
Growth is continuing
Wise share price surged as investors reacted to its strong financial results as its growth accelerated. In a statement, the firm said that its cross-border volume jumped by 23% to £145.2 billion. This growth happened because of the strong brand awareness and the popularity of its Wise account.
Wise had over 15.6 million users, with personal customers growing by 22%. While most of these customers use one product, more of them have started expanding to other solutions like its multi-currency accounts.
This growth helped to push its revenue up by 15% to over £1.2 billion in the last financial year. Its annual profit rose by 18% to £416 million, and the management expects that the growth will gain steam.
One catalyst for the strong revenue growth was high interest rates, which helped it earn more money from customer deposits.
Wise hopes that a US listing will help it achieve a better valuation. However, there are concerns that it is currently overvalued as stablecoin transactions surge. Wise has a market cap of £12 billion, meaning that it has a price-to-earnings ratio of 28, which is higher than other comparable fintech companies.
Wise stock price forecast
The daily chart shows that the Wise stock price has been in a strong rally in the past few months. It then made a bullish breakout above the key resistance level at 1,128 on Thursday, the highest swing on February 5. It invalidated the double-top pattern by moving above that level.
The stock has jumped above all moving averages, while the MACD and the Relative Strength Index (RSI) pointed upwards. Therefore, the most likely scenario is where the Wise share price continues rising, with the next point to watch being at 1,250p.
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