$WISE (-3,89 %) stock is up this morning because of this news.

Source: https://finance.yahoo.com/news/fintech-wise-plans-shift-main-062005742.html

My analysis of $WISE (-3,89 %) :

- Founding and purpose: Wise was founded in 2011 by Kristo Käärmann and Taavet Hinrikus to combat high fees and inefficiencies in international money transfers.

- Business model: Wise uses local liquidity pools and APIs to optimize currency conversions and transfers without currencies physically crossing borders.

- Market entry: Wise is increasingly integrating with government-backed payment systems (DPS) to bypass bank partnerships and enable faster and cheaper transfers.

Market and competition:

- Market size: the global market for cross-border transfers is approximately USD 35 trillion annually, with corporates (~50%), SMEs (~40%) and consumers (~10%) being the main players.

- Competition: Wise competes with traditional banks, fintechs and crypto solutions. However, it has a strong position through its integration with DPS and its network effects.

- Geographic focus: Most transfers are between USD, EUR and GBP. India is the largest market in Asia, although Wise's overall presence in Asia is weaker.

Business divisions:

- Cross-border transfers: main source of revenue (63% of revenue). Wise continuously lowers fees (take rate) to attract customers and encourage usage.

- Wise Account: A multi-currency account with features such as a debit card and the ability to create local bank accounts in multiple currencies.

- Interest Income: Wise generates interest income from customer deposits, with a portion of the interest returned to customers.

Wise Platform: White-label solutions for banks and corporates to enhance their cross-border payment infrastructure.

Competitive advantages:

- Network effects: Large liquidity pools and numerous transactions enable cheaper and faster transfers.

- Integration with DPS: Wise has access to multiple DPS, reducing dependency on banks and increasing efficiency.

- Negotiating power: Partnerships with banks and DPS strengthen Wise through high transfer volumes and reputation.

Challenges and risks:

- Slow growth in SMEs: SMEs are less willing to switch from traditional banks, which inhibits growth in this segment.

Regulatory risks: Stricter regulations could affect Wise's business model.

- Crypto competition: Stablecoins could pose a threat in the long term, although they are currently still inefficient.

Financial projections:

- Growth: Wise is expected to grow revenue at 22% CAGR and PBT at 19% CAGR by FY'28.

- Margins: Long-term PBT margins are estimated at 13-16% as the company reinvests heavily in expansion and product development.

Conclusion:

Wise has a strong market position due to its innovative infrastructure and low fees. However, it faces challenges such as slower SME growth, regulatory risks and potential competition from cryptocurrencies. The company remains a leading player in the cross-border payments space.

In this post I’m sharing with you my Watchlist. Stocks that I would like to buy if the price is right. What is your opinion on this watchlist? Feel free to share yours with me and everyone too.

• $ANET (-1,74 %)
• 
  $V (+0,62 %)
• 
  $WISE (-3,89 %)
• 
  $TSM (+1,83 %)
• 
  $MELI (+0,03 %)
• 
  $FICO (-0,39 %)
• 
  $KLAC (-1,69 %)
• 
  $ADP (+0,68 %)
• 
  $GOOGL (+2,74 %)
• 
  $AMAT (-0,63 %)
• 
  $MPWR (+0,13 %)
• 
  $RACE (+2,7 %)
• 
  $NEM (+1,91 %)
• 
  $ISRG (-0,12 %)
• 
  $TEAM (+1,78 %)
• 
  $ITX (+1,53 %)
• 
  $CRWD (-1,24 %)

En el periodo del mes he perdido casi un 9% de mi capital en los mercados 😆

En parte me alegro de haber hecho ventas de empresas que estaban a PER bastante alto antes de las caídas como por ejemplo:

$ABNB (+0,38 %)

$AMZN (+1,62 %)

$WMT (+0,92 %)

O compañías con mucha deuda respecto a sus activos tanto las que evite comprar como las que compré (de forma quizás algo impulsiva 🙄) como pueden ser:

$WISE (-3,89 %)

$VFC (+2,22 %)

Sin embargo he aprendido la lección cuando los mercados caen todo cae (en mayor o menor proporción) sin importar lo barata o por decirlo de otra manera la buena oportunidad que pueda suponer el precio al que cotiza una acción en este momento por el entorno de mercado lo más probable es que caiga por defecto 🤷‍♂️

De todas formas el plan sigue siendo el mismo:

• Generar Riqueza a Largo Plazo
• Aportar más en Periodos Difíciles
• Aprender de los Errores y Seguir Mejorando

Incorporamos a la cartera $WISE (-3,89 %) un neobanco especializado en el cambio de divisas, a nivel de usuario en el cambio funciona mejor que otros competidores como Revolut o Remitly para transferencias internacionales y después de estudiarlo parece ser una buena opción siendo empresa Europea 🇪🇺👀

¿Opiniones? 🤔💬

$WISE (-3,89 %) My deep dive on Wise and why it may be a great investment : https://open.substack.com/pub/waver/p/new-position-wise-the-future-of-finance?r=c9o99&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true