Is Transferwise a long term buy or sell?

the Wise course of action was in a narrow range three weeks after its direct listing in London. Formerly known as Transferwise, the company’s shares are trading at 962p, which is slightly below the all-time high of 1030p and 20% above its opening price. That values ​​the company at over 13.3 billion pounds ($ 17 billion). Interestingly, this makes it more valuable than Western Union, MoneyGram, and Euronet Worldwide combined.

Wise news. Wise is one of the most successful UK startups in the world. The company was among the first money transfer companies to disrupt the industry by reducing costs and improving transparency. He did this by showing the overall cost of transactions before customers send money.

In addition, it has achieved this by reducing transaction costs. As a result, the company added more than 10 million users and significantly increased its revenue. It has also diversified its activities by adding new solutions such as a multi-currency account and business solutions.

Wise, like most digital platforms, performed well during the pandemic as more and more people adopted these solutions. The main concern is that last year’s growth will start to fade as the global economy rebounds. However, supporters of Wise say the company will continue to experience robust growth as the clients it added last year increase their transactions. In other words, the lifetime value of its customers will continue to increase.

What future for the Wise share price? A quick glance at the fundamentals of Wise shows that the company is clearly overvalued. On the one hand, this is a company that has generated over $ 400 million and is valued at over $ 17 billion. Its sales rose more than 40% in the first quarter to over £ 123 million.

However, a quick glance at some of its top performing peers like PayPal, Square, and AfterPay shows that high growth tech companies tend to attract these bonuses.

5-Year Wise Share Price Forecast

Wise went public earlier this month. Therefore, we can say that the stock is still in a price discovery phase. The Wise share price initially peaked at 1,030 pence, then erased some of those gains when it fell to a low of 902 pence on July 16. The stock has moved sideways over the past few days and is hovering near its moving averages.

Therefore, in my opinion, I suspect the stock will remain in a consolidation phase for some time as investors wait for more data from the company. However, over the next five years, I suspect stocks will be significantly higher than they are today.

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