Send me real-time posts from this site at my email

Why IonQ Stock Skyrocketed 39.7% Last Month

What happened

Shares of IonQ (NYSE: IONQ) gained 39.7% in February, according to data from S&P Global Market Intelligence. The stock soared following news that the quantum-computing company had made a new breakthrough stemming from its partnership with Duke University.

IonQ published a press release on Feb. 10 announcing that it had invented a new quantum computing operation in conjunction with the Duke Quantum Center. The share price bounced back after suffering a 31.5% sell-off in January.

Image source: Getty Images.

So what

IonQ and Duke's new quantum gate provides a way to operate on multiple connected qubits at once. The partners see the new quantum-computing operation potentially accelerating several key computing techniques and advancing the scaling of quantum algorithms.

IonQ went public through a merger with a special purpose acquisition company (SPAC) last October and has seen volatile trading in subsequent months. After a recent pullback, the stock is now up roughly 13% since the completion of the merger.

Now what

IonQ stock has given up some ground early in March's trading. The company's share price has slipped roughly 17% due to bearish pressures affecting the broader market.

IONQ data by YCharts.

The company is scheduled to report its fourth-quarter results after the market closes on March 28. With its last update, management issued guidance for sales in the fourth quarter to come in between $1 million and $1.2 million and for full-year sales to be between $1.5 million and $1.7 million. IonQ expects fourth-quarter bookings to be between $600,000 and $800,000 and full-year bookings to be between $15.7 million and $15.9 million.

IonQ currently has a market capitalization of roughly $2.3 billion and is valued at approximately 377 times this year's expected sales. Quantum computing is a market that could see massive growth over the long term, but investors have generally been shying away from speculative plays, and the company's hugely growth-dependent valuation sets the stage for the stock to see volatile trading in the near term.

10 stocks we like better than IonQ, Inc.
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now... and IonQ, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 3, 2022

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue