AHH that makes more sense. Wise will have to diversify fast. I still think the app is way better and more transparent than banks will
Happy that I dodged this offer. I think this company is severely overvalued, even with the recent loss. If regular baks can make transfers fast, I don’t see much use anymore for Wise, unless the commission with regular banks stays as high as it is now.
Customers use Wise for the lower cost of the transfers - keeping more of their money rather than giving it to the banks. The fact that Wise made transfers very fast as well is just the icing on the cake.
While a new bank transfer platform might indeed be just as fast as Wise, it’s very unlikely to be as cost effective.
It’s not the speed but the cost. instant sepa transfers are great, but I can wait 24hr if the fee is lower.
Also I can set up standing orders for swift payments in two different currencies. Winning!
Just curious, why do you think it’s overvalued? According to even my most conservative calculations, it’s quite undervalued even at its peak two weeks ago. They have been doing very well if you look at past reports etc
I think just based off its current PE ratio. Of course, earnings can lower it but that’s what it is apparently (And also the DCF’s from Simply Wall St). Would love to see your DCF though!
I had a bank account in France -until very recently- and they actually used Wise to do their transborder transfers, but I still dealt with Wise directly to transfer and empty my account as the cost was lower for me. I am so impressed with Wise and hope the few shares I have with them will increase in value after this little slump.
That 5% through OwnWise is looking good right now.
Been pondering this issue - is it worth taking some of the heat from your rising stocks to build cash or better to hold? I get that you can’t guarantee that a stock will continue to rise or bounce back from a fall so is taking an early cut of the profit a good strategy?
Wise have published their Q3 mission update.
And the Q2 trading update.
Its not just the speed with banks its the outrageous fees for making a transfer. I moved 250k sterling with wise and saved about 9k compared with my bank Barclays.
No real time prices with Wise Assets, just a daily update which occasionally dont work. That put me off when i tried it.
IMO the logic to this depends on how many holdings you have and at what weighting.
Let’s say for example you had invested £100 in Facebook in 2012, out of a total portfolio of £500 (20% of your entire initial investment). Three years later your Facebook stock was worth £300. Now, on the one hand you might have felt it was a keeper (and with the benefit of a crystal ball telling you what 2021 held, you would have been right). On the other hand you would have seen what happened to MySpace and wondered what was stopping Facebook potentially going the same way. And if that happened, with your other investments showing modest growth in line with the market by comparison, your entire portfolio could be in the red over the long term. In that instance there might be some logic in selling half the stock; realising a confirmed profit of £50 (50% of that stock, 10% of your entire initial investment just from this one stock) over three years, holding the other half to realise further growth and in the knowledge that even if the entire company tanks and you get a fraction of current value for the other half, you’re still up.
Now let’s take another example, with a subtle but important difference. Let’s say you invested £100 in Facebook in 2012 out of a total portfolio of £10000 (Facebook is 1% of your initial investment). In three years it’s worth £300. Same upsides and downsides, you don’t have a crystal ball to know what it’ll be worth in 2021. That growth is equally impressive, but the difference here is that if Facebook did tank and your stake became worthless, your entire portfolio is only down by 1% on the initial investment, which you have presumably more than offset by overall portfolio growth roughly in line with the market. In this scenario hedging your bets makes a lot less sense if you still believe in the stock’s capacity for future growth at market-beating rates, as if you hedged your bets on every investment like this then the inevitable failures/mistakes from the other 99% of your portfolio are not being offset by the successes to the degree they should be for the level of risk you’re taking.
Looks like some investors have lost confidence in Wise. Hopefully, it will be seen as a good jumping in point for others for a long-term hold as the analysts I’ve seen suggest it’s a neutral or hold. Sentiment is a strong sell currently, though. Probably doesn’t help having Kristo quoted on every press release after he fluffed up his own finances and brought his entire business under question. Honestly feel like he hasn’t been particularly apologetic about the situation as he certainly hasn’t helped the share price.
Wise price took yet another dive today.
Well, this is a class act. One founder can’t even manage to get his tax return done and another sells his shares at a low rate, just after the clearing houses demo working on faster cross-border payments.
What a way to convince the market of the confidence in your own business.
There’s not much you can do about bigger companies muscling in, but some of the stupidity being exhibited by the founders is infuriating considering the product they have.
Now Facebook has announced a pilot scheme for a digital wallet with no transfer fee.
Can’t say it’s looking great. I was going to hold long-term but right now the management doesn’t inspire trust and have demonstrated they value their payout more than seeing the business grow and meet all the challenges.
Will be watching this one carefully.
I brought in just over £10, the average down a little at £9, then again at £8 … don’t make me have to do it again at £7!
And Paypal nosedived last week. Yet they will offer a similar service at some point
Oh wow! The way wise’s shares have tanked…!! Good time to buy or wait to atleast a minimal recovery?
IMO Wise is still very expensive; i’d consider it around 100 p/e as growth is so fast, i.e. plenty of downside atm.