From The Motley Fool · Johnny Rice · · 50s
Why I Wouldn't Buy IonQ Stock
Quantum computing hype risks $1,000 investment in IonQ.
In brief
Quantum computing hype risks $1,000 investment in IonQ. IonQ's quantum computing stock trades at a price-to-sales ratio above 40, with massive losses and a decade-long path to profitability. Originally reported by The Motley Fool.
Quantum computing misconception
Quantum systems are not faster computers but better at solving complex problems.
IonQ's revenue growth
IonQ's sales reached $80.1 million in Q2, up 287% from a year earlier.
IonQ's steep losses
IonQ's operating losses reached $337 million in Q2, more than four times its revenue.
SkyWater acquisition impact
IonQ acquired SkyWater Technology to integrate vertically into a one-stop quantum shop.
Price-to-sales ratio
IonQ trades at a price-to-sales ratio above 40, indicating high valuation risk.
Investment timeline
Quantum technology may take a decade to become commercially viable, risking shareholder value.
The headline
IonQ's quantum computing stock trades at a price-to-sales ratio above 40, with massive losses and a decade-long path to profitability.
