IonQ Draws Sell Warning Despite $80 Million Q2 Revenue and $17 Billion Valuation
Updated
Updated · Yahoo Finance · Aug 29
IonQ Draws Sell Warning Despite $80 Million Q2 Revenue and $17 Billion Valuation
3 articles · Updated · Yahoo Finance · Aug 29
Summary
IonQ posted record second-quarter revenue above $80 million, up 287% year over year, but an analyst still warned against buying the stock.
Operating costs topped $417 million in the quarter, and cumulative operating losses reached $608.8 million in the first six months, underscoring heavy cash burn despite rapid growth.
That burn could force IonQ to raise more capital and dilute shareholders, even after ending the SkyWater Technologies deal with about $2 billion in cash.
Valuation is the other concern: IonQ's market cap is nearly $17 billion, or more than 55 times forward sales, after the stock surged more than 480% in two years.
The warning lands as quantum-computing shares remain a hot trade, with IonQ, Rigetti and D-Wave all up 20% to 50% from their April lows.