Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    StockNews24StockNews24
    Subscribe
    • Shares
    • News
      • Featured Company
      • News Overview
        • Company news
        • Expert Columns
        • Germany
        • USA
        • Price movements
        • Default values
        • Small caps
        • Business
      • News Search
        • Stock News
        • CFD News
        • Foreign exchange news
        • ETF News
        • Money, Career & Lifestyle News
      • Index News
        • DAX News
        • MDAX News
        • TecDAX News
        • Dow Jones News
        • Eurostoxx News
        • NASDAQ News
        • ATX News
        • S&P 500 News
      • Other Topics
        • Private Finance News
        • Commodity News
        • Certificate News
        • Interest rate news
        • SMI News
        • Nikkei 225 News1
    • Carbon Markets
    • Raw materials
    • Funds
    • Bonds
    • Currency
    • Crypto
    • English
      • العربية
      • 简体中文
      • Nederlands
      • English
      • Français
      • Deutsch
      • Italiano
      • Português
      • Русский
      • Español
    StockNews24StockNews24
    Home » This popular UK stock is shifting to the US. Here’s what I think it means for the share price
    News

    This popular UK stock is shifting to the US. Here’s what I think it means for the share price

    userBy userJune 5, 2025No Comments3 Mins Read
    Facebook Twitter LinkedIn Telegram Pinterest Tumblr Reddit WhatsApp Email
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Image source: Getty Images

    In news out today (5 June), Wise (LSE:WISE) announced that it’s planning to list its shares in the US. The move would see the US listing become the company’s main one while maintaining a secondary listing on the London Stock Exchange (LSE). The news came as a surprise to some, but the stock rocketed over 12% higher on the news. Here’s what I think happens next.

    Implications for the market

    For the LSE in general, it’s not great news. It’s yet another company shifting to the US. For several years, there have been worries about low valuations and weak liquidity in UK markets, which has meant several management teams have decided to look across the pond.

    Some companies have moved to the US with the primary listing and then decided to cancel the UK listing altogether. There are no immediate signs that Wise will do the same, but it’s probably a thought in the back of some investors’ minds.

    In terms of the specifics why Wise has chosen to move, the CEO commented that “we believe the addition of a primary US listing would help us accelerate our mission and bring substantial strategic and capital markets benefits to Wise and our owners”. He also noted the US is “the biggest market opportunity in the world for our products”.

    Good for Wise

    The immediate reaction to the share price clearly shows positive sentiment. Firstly, being listed in the US will allow retail investors there to more readily buy the stock. Yet more than that, the listing will create more publicity around the business. If Wise can then gain more traction and scale, it will grow revenue and profits. This, in turn, should help the share price of the UK listing rally.

    With the second listing, Wise will be able to raise more capital. This can be used to develop new products and enhance the offering to clients. I see this as a good thing, as it means the business does not have to use debt or even retained earnings to fuel its growth.

    Some concerns

    As a fintech company, Wise faces a lot of competition. Not only are there other disrupters in this space, but traditional banks are also trying to regain some of the lost market share. Therefore, Wise has to try to stay ahead of the game; otherwise, customers could be easily lost.

    Another factor is valuation. With a price-to-earnings ratio of 97, it’s certainly not cheap! The stock is up 45% over the past year and has hit fresh 52-week highs this morning.

    I think the optimism around the jump today should ease off, but when I look at the stock with a long-term lens, I think the move to the US could be a smart move. I’m putting it on my watchlist to consider buying once the dust settles on this news.



    Source link

    Share this:

    • Click to share on Facebook (Opens in new window) Facebook
    • Click to share on X (Opens in new window) X

    Like this:

    Like Loading...

    Related

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleHere’s what the Warren Buffett indicator says about the stock market
    Next Article This leaner and smaller FTSE stock looks primed for future growth
    user
    • Website

    Related Posts

    First Solar (FSLR) Outpaces Stock Market Gains: What You Should Know

    June 6, 2025

    Dow, S&P 500, Nasdaq surge after jobs report, Tesla jumps on Musk-Trump cooldown

    June 6, 2025

    Are BP shares undervalued? | The Motley Fool UK

    June 6, 2025
    Add A Comment

    Leave a ReplyCancel reply

    © 2025 StockNews24. Designed by Sujon.

    Type above and press Enter to search. Press Esc to cancel.

    %d