IonQ Stock Is an Investment in Cutting Edge, Global Solutions
IonQ (NYSE:IONQ) seeks to lead the way in a very specific market: quantum computing. Fortunately, you don’t have to be a mathematician or computer scientist to invest in IONQ stock.
It is important to understand what the company does, though. To put it simply, IonQ develops quantum computers designed to solve the world’s most complex problems.
This niche industry has vast moneymaking potential. According to IonQ, experts predict that the total addressable market for quantum computing will reach around $65 billion by 2030.
IonQ got in fairly early and aggressively, as the company has been around since 2015 and produced six generations of quantum computers. There’s a terrific investment opportunity here, yet the share price is down – and if you ask me, this just doesn’t compute.
A Closer Look at IONQ Stock
Going back to the beginning, IonQ offered its shares for public trading on the New York Stock Exchange on Oct. 1, 2021, after reverse-merging with dMY Technology Group III.
The stock started off at around $10 but sank to the low $7’s in just a few days’ time. However, that turned out to be a great time to start a long position.
Amazingly, IONQ stock staged a swift turnaround and soared to nearly $36 in November. In hindsight, however, this rally went too fast and too far.
Inevitably, a retracement ensued and the early investors had to cough up some of their gains. By early December, the share price had declined to $18 and change.
Sure, you could wait and hope that IONQ stock falls further before considering a position. Yet, you might miss out on a buy-the-dip opportunity with an ambitious, future-facing tech business.
A Wave of Advantages
I case I didn’t make it abundantly clear already, IonQ is serious about advancing quantum-computing technology.
Case in point: in order to cement its leadership position in this niche, IonQ recently revealed its plans to use barium ions as qubits in its systems, thereby “bringing about a wave of advantages it believes will enable advanced quantum computing architectures.”
A qubit, or quantum bit, is basically a tiny bit of coded information in quantum mechanics.
It’s perfectly fine if you don’t fully understand the scientific minutiae, as IonQ President and CEO Peter Chapman and his team have the necessary know-how and experience.
“We believe the advanced architectures enabled by barium qubits will be even more powerful and more scalable than the systems we have been able to build so far, opening the door to broader applications of quantum computing,” Chapman assured.
Apparently, the advantages of using barium ions as qubits include lower error rates, higher gate fidelity, better state detection, more easily networked quantum systems and iterable, more reliable hardware, with more uptime for customers.
Attracting the Best and Brightest
Thankfully, now I can leave the science to the scientists, and focus on what I do best: breaking down financial data. After all, I’d be hard-pressed to recommend any company if it didn’t at least have a decent capital position.
CFO Thomas Kramer was evidently glad to report that, as of Sept. 30 IonQ had cash and cash equivalents of $587 million. The company’s strong balance sheet, according to Kramer will allow IonQ to “accelerate [the] scaling of all business functions and continue attracting the industry’s best and brightest.”
Since IonQ is well-capitalized, the company should be “well-positioned to benefit from Capitol Hill’s interest in quantum as shown by the infrastructure bill,” the CFO added.
It’s also worth noting that IonQ generated $223,000 in revenues during 2021’s third quarter, bringing the year-to-date total to $451,000.
Hopefully, the company can parlay its quantum-computing know-how into seven-figure revenues in the near future.
The Bottom Line
IonQ’s loyal investors don’t need to understand everything about qubits. They only need to envision a robust future for the quantum-computing market.
We can’t claim that IonQ is generating massive revenues at this point. Therefore, it requires patience and foresight to invest in this company with confidence.
Yet, an early stake could offer vast rewards in the long run. After all, when it comes to deep-level, next-gen quantum computing, IonQ clearly has it down to a science.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
