The specialist in quantum computing IonQ (NYSE:IONQ) revealed unexpectedly strong performance in the second quarter. As a result, its shares skyrocketed in the intraday trading session on Tuesday.
Brief Summary:
During Q2 of 2022, IonQ (NYSE:IONQ) secured several strategic alliances and sales contracts.
The revenue blew beyond projections, and the losses were less severe than anticipated.
The stock’s 260 times sales multiple is enough to make anyone’s eyes water.
What’s the Story?
On Tuesday, after the release of an unexpectedly robust earnings report, shares of quantum computing pioneer IonQ soared. After steadily increasing throughout the day, the stock ended Tuesday’s trading session up 31.1%.
What’s the reason?
Second quarter sales for IonQ (NYSE:IONQ) were $2.6 million, up from $93,000 in the same period last year. During the same time frame, order bookings increased from $57,000 to $600,000. Losses per share dropped from $0.08 to $0.01 on the bottom line. If you had asked the typical financial expert, they would have predicted a loss of $0.10 per share on sales of over $2.4 million.
Paid computing contracts with aircraft manufacturer Airbus and chemical giant Dow Chemical were among the business’s several sales agreements and research collaborations during the quarter. The company’s quantum-based Aria computer customers are looking to tackle challenges that conventional digital computers can’t.
In addition, the Aria system gained three more qubit units, significantly increasing its computational potential. This brings the total number of algorithmic qubits in Aria to 23. IonQ isn’t the world’s most extensive quantum computer, but it has few competitors that provide paid access to their quantum computers. The firm markets its quantum computing offerings through online portals hosted by the industry’s most prominent cloud service providers.
What’s Next?
IonQ is a forerunner in the emerging field of quantum computing, a fascinating new research area. The firm and its stock have enormous growth potential over the long run, but they also carry a substantial amount of market risk.
In my opinion, it is a very speculative and overvalued stock. Although share prices have dropped by 15% since the company’s market debut in the summer of 2017, the stock is still traded at an extremely high 260 times trailing sales. The firm’s stock seems more like a lottery ticket than an investment, given its high risk and low payoff.
Featured Image: Megapixl @Vchalup
Author Shariq Khan 
