Should I Buy IonQ (IONQ)? Finance YouTuber Analysis

The YouTuber holds IonQ as part of his individual quantum stock portfolio, which he describes as 'asymmetric bets' on companies with high growth potential. He notes that IonQ is one of the few pure-play quantum companies with meaningful revenue, and he invests in it with a small, survivable position, expecting significant returns if the technology proves successful.

“Now, for those of you that would rather own the individual stocks yourselves, let me show you exactly how I do it because I do own all four of these quantum names directly.”

The YouTuber notes IonQ's substantial growth in backlog and revenue, tripling year over year. He also points to their proposed acquisition of SkyWater Technology, which would give them control over the entire manufacturing process on US soil, potentially opening doors for Pentagon contracts.

“Today, it's nearly five times that. Revenue tripled year over year, up 202% and they announced a $1.8 billion acquisition of SkyWater Technology, which is a trusted US semiconductor foundry.”

The YouTuber recommends Ion Q, highlighting its transition from a research story to an operating business with significant quarterly revenue jumps. He notes its strategy of selling systems at near cost to embed with customers, its technical lead in qubit fidelity, and the shift from selling hardware to becoming a platform. The key metric is continued revenue trajectory.

“Ion Q is pushing both forward at the same time and that's finally starting to show up in their real results.”

The YouTuber identifies IONQ as a high-risk, high-reward 'pure play' quantum builder. He notes its strong year-to-date performance, presence on AWS Bracket and Azure Quantum, and a significant 20x speed-up on a drug chemistry problem. IONQ's trapped ion qubits offer fewer errors and better performance, with real paying customers like Chattanooga's electric utility, positioning it as a potential 'TSMC of quantum computing'.

“If quantum dominance happens in four years, Ionq is positioned to be the TSMC of quantum computing.”

The YouTuber is waiting for a major dip before considering an investment in IonQ, despite its impressive year-to-date gains. They express concern about the increased risks associated with small-cap stocks and couldn't find concrete financial reasons to justify the stock's significant appreciation, suggesting caution.

“Now with any stock especially ones that are small cap the risks are much greater for investing and this happens to be one where I'm going to wait and see for any major dip before I consider investing it's increased year-to-date is honestly great to see but I couldn't find any concrete reason in the finances as to why they have those gains.”

The YouTuber suggests INQ (IONQ) as a buy, highlighting its position as a revenue leader in quantum computing with 428% year-over-year revenue growth and guidance for over $200 million this year. The company has substantial cash reserves, enabling investment and potential acquisitions. A key catalyst is the proposed $1.8 billion acquisition of Skywater, a US semiconductor foundry, which would make INQ a vertically integrated quantum company approved for US military chip production.

“It is a pure play quantum company. They did $62 million in revenue just last quarter which is pretty cool. 400% growth. They're guiding to over 200 million in revenue this year. So, it's it's a real business.”

The YouTuber suggests buying IONQ on a dip from its current price of $49.45, with a short-term price target of $55 to $60. He emphasizes buying low based on technical analysis and taking profits at the target.

“Ion Q is sitting at $49.50. Then what else coach got for you? Irene. I call this Irene. If you've been with me from the jump, you already know this is again going back to the well for the rinse and repeat.”

The analyst advises selling IonQ, despite its $1.7 billion market cap and $80 million in revenue, due to substantial losses (nearly $1.5 billion, with operating losses of $483 million). He argues that the company's need to lose more money to grow revenue is a negative sign, indicating a lack of asymmetric potential and fundamental support for its valuation.

“When a company has to lose more money to grow their revenue, that's not a good sign. That's not what I want to invest in. That's not asymmetric potential. That's what I see with Ionic.”

The YouTuber avoids IonQ, another quantum computing company, due to its poor financial results. He highlights its $43 million in revenue against $324 million in losses and $135 million in negative free cash flow, indicating that despite potential technology, the company's economics are not heading in the right direction and it will likely need to raise more capital.

“They might have really great technology, but I just don't see financial results that show me that they're headed in the right direction.”

The analyst advises avoiding IonQ due to its extremely high valuation (150x enterprise value to sales) despite significant losses and negative free cash flow. While quantum computing has potential, the current price is deemed too risky given the company's unprofitability and the likelihood of continued cash burn and dilution, making an 80-90% stock drop more probable than substantial returns.

“It is very possible that the that Ionic continues to grow and is a disruptive company in quantum computing. But we don't want to pay this kind of a price for that growth. When you have an enterprise set value to sales of 150, that just typically doesn't work well for investors.”

The analyst suggests selling IonQ due to its high valuation ($4.6 billion) which is not justified by its current operations. He points to substantial net losses and negative free cash flow, questioning the company's long-term sustainability and ability to fund operations without diluting shareholders.

“another one that got a ton of tension was ionic that bubble also starting to burst... still a $4.6 billion valuation again the operations do not really justify that.”

The YouTuber identifies IonQ (IONQ) as a top pick among pure-play quantum stocks due to its size, first-mover advantage, and technological edge with trapped ion technology. However, he advises waiting to buy until the company announces an inevitable capital raise, which is expected to cause a temporary dip in share price, offering a better entry point.

“This is one that I would wait for a little while a drop in the shares when it announces either that convertible debt or the share sale.”

The YouTuber likes Ionq as a leader in the quantum computing race, acknowledging it's a very long-term play with potential volatility. He notes that Brian from Business with Brian also gave it a vote of confidence, highlighting its trapped ion architecture as a competitive advantage.

“I still like Ionq as a leader in the quantum race, but it's a very long-term pay. and going to be a roller coaster along the way.”

The YouTuber recommends IonQ as a leader in quantum computing, citing its trapped ion technology, extensive patent portfolio, and partnerships with entities like the Department of Defense and SK Telecom. He notes Amazon's investment and significant sales growth (95% expected this year), positioning it as years ahead of competitors despite its small current revenue.

“Ion Q's patent portfolio nearly 400 quantum networking patents has helped it grow quickly and sign contracts with major partners like the Department of Defense and SK Telecom.”

The YouTuber is buying small amounts of IONQ at regular intervals, viewing it as the market leader in quantum computing with strong revenue forecasts. Despite its volatility, he sees significant long-term upside, targeting $172 per share over the next three years in a $173 billion market.

“Over the long term, though, this is a $173 billion mark, and even a fraction of that could see ION Q to my $172 target over the next 3 years. So, I'm buying small amounts at regular intervals to build that position.”

The YouTuber is buying Ionq, a pure-play quantum computing company, despite its high valuation, due to its distinct advantages like trapped ion technology and a strong patent portfolio. He projects an 87% annual revenue growth and a potential price target of $73 to $171 over the next three years, emphasizing building a position over time and taking advantage of dips.

“That's because yes, those valuations are still ridiculous. Here, q is trading for a price of 132 times its sales... But for a company nearly doubling its sales every single year and expected to do that for upwards of a decade, you just have to jump in here, folks.”

The YouTuber identifies IonQ as his favorite pure-play quantum computing stock due to its distinct advantages, including trapped ion technology offering high qubit fidelity and a strong patent portfolio. He highlights its contracts with major partners like the Department of Defense and Amazon's investment, despite current negative free cash flow, expecting future revenue growth to attract funding.

“First up here ionq ticker andq was the first publicly traded pure play company in that quantum computing space and its distinct advantages make it my favorite of the group.”

The YouTuber suggests IonQ as a long-term investment in quantum computing, highlighting Amazon's investment and IonQ's leadership in the nascent but potentially massive market. While acknowledging the technology is early and the stock may be ahead of itself, the long-term growth potential makes it suitable for a patient, multi-year investment strategy.

“long seen as a fantasy Quantum Computing uses the laws of quantum mechanics to solve problems too complex even for the most advanced computers in basic terms is computing power that could be a 100 million times faster than a regular chip but folks we are still extremely early in this technology and even a leader like ion Q isn't quite there yet.”

The YouTuber advises avoiding IonQ and the quantum computing theme for now, despite recent breakthroughs. He argues that while the technology is promising, it's still many years from practical use, requiring millions of qubits compared to current capabilities, and the market exuberance is driven by speculation rather than a long-term outlook or current fundamentals.

“I think investors should just avoid the theme for now when it becomes a reality Quantum Computing is theoretically expected to solve problems on the order of a 100 million times faster than classical computers”

The YouTuber recommends IonQ as a speculative long-term play in quantum computing, a technology with massive future potential. Despite extremely high valuations (79x price-to-sales) and negative earnings, revenue is surging (88% this year, 99% next). He suggests a small initial investment due to the early stage of the technology.

“maybe dip your toe in now but put this one on your radar for later”