2nd Skies Trading

Is This Company The Next PayPal?

Wise (LSE: WISE), formerly known as TransferWise, offers a global money-transfer service with an aggressive marketing strategy which reminds us of how PayPal started off 20 years ago.

Not only does the company offer customers the ability to send and receive funds globally whilst charging a fraction of what banks or other transfer services do, they also offer clients to hold funds in 50 different currencies.

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On top of that, WISE has partnered with banks and is now offering their clients a VISA debit card that can be used to make purchases with the funds held in the digital wallet.

This is a strong combination which should ensure a strong influx of clients, plus it hints about that the company will continue to add more services along the way, strengthening the growth potential of the company.

WISE also has a very transparent pricing model and like most money-transferring services, they earn their revenue through fees, so attracting more clients is crucial for future growth.

Financials also look solid with a 70% revenue growth between 2019-2020 and 39% between 2020-2021.

With the company continuing to aggressively push into new geographic regions, we think that WISE could be a very interesting candidate for investors looking for growth stocks that are ‘still in the making’.

Technical Analysis

 

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Since the company IPO’ed in late July, there is not a lot of price action available, but the price action that is available suggests bullish pressure is steadily building towards a 1000-1050.

A successful breakout above 1050 would further strengthen the bullish context and could offer investors a clear zone to look for entry locations.

Option Positioning

Since WISE is transacted through the LSE (London Stock Exchange) we do not have any options data on this stock, hence nothing to report.

FULL DISCLOSURE: Chris Capre currently has no stock or option position in WISE, but he does have pending orders on WISE. If you’d like to learn more about Chris’s trades and positions, you can get access via the Trading Masterclass where he shares his live trades, further investment ideas and daily market analysis.

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