TLDR
- IonQ’s stock soared by 10.9% on Monday without a distinct news trigger fueling the surge
- The quantum computing firm has a price-to-sales ratio of 2,293, with trailing revenue amounting to just $7.5 million
- Analysts hold a mixed outlook, with nine recommending Buy, seven Hold, and one suggesting Sell
- The company reported a substantial loss of $3.58 per share in the previous quarter, falling short of estimates by $3.14
- IonQ isn’t projected to achieve profitability until at least 2031, even with an anticipated revenue of $1.5 billion by 2030
IonQ’s shares rose by 11% on Monday, closing at $53.86 with a trading volume of 28.7 million shares, which is higher than the average daily volume of 24.2 million shares.
The rally occurred without any apparent news. There were no new contracts, no product announcements, and no analyst upgrades on that very day.
Market observers attributed the rise to general enthusiasm for quantum computing stocks in 2025. However, when examining the figures, that explanation seems flimsy.
IonQ’s year-to-date performance paints a different picture than the quantum hype implies. The stock has only increased by 17% for the year, barely outperforming the S&P 500’s 14% gain over the same timeframe.
Valuation Concerns Mount
The company holds the distinction of being the largest pure-play quantum computing stock by market cap, which stands at $18.7 billion. However, the fundamentals present a more challenging scenario.
The company generated just $7.5 million in revenue over the past 12 months, resulting in a price-to-sales ratio of 2,293.
The company has no price-to-earnings ratio as it has no earnings. The previous quarter’s results showed a loss of $3.58 per share, significantly missing analyst estimates.
Revenue did surge by 221.5% year-over-year to $39.9 million in the most recent quarter, exceeding the expected $27 million. However, the company’s net margin stands at a negative 1,836%.
Analysts’ sentiments are still mixed. Nine analysts rate the stock as Buy, seven as Hold, and one recommends Sell. The consensus price target of $72.08 indicates potential upside from the current levels.
Wall Street Revisions
Recent changes in price targets reflect some optimism. B. Riley raised its target from $75 to $100 in September. Mizuho started coverage in December with a $90 target and an Outperform rating.
Benchmark increased its target to $75, whereas Wedbush began coverage with a $60 target. DA Davidson adjusted its target from $35 to $55 but maintained a Neutral rating.
Analysts don’t anticipate profitability in the near term. Projections indicate the company could reach $1.5 billion in sales by 2030 yet still post a loss. Even 2031 seems uncertain for achieving profitability.
Recent insider activity caught attention. Director Kathryn Chou sold 20,000 shares at $51.40 in December. Chief Revenue Officer Rima Alameddine sold 100,000 shares at $46.89 in November.
Institutional investors have a mixed picture. Amazon purchased a new position worth $36.7 million in the second quarter. Norway’s sovereign wealth fund, Norges Bank, acquired $114.8 million worth of shares.
The stock is trading above its 200-day moving average of $50.05. The 52-week range spans from $17.88 to $84.64, highlighting the volatility investors encounter.
IonQ’s beta of 2.62 implies it fluctuates more than twice as much as the broader market. Monday’s surge aligns with this pattern, even without news to account for it.
