1 Quantum Computing Stock That Could Double in Value
IonQ Inc. (IONQ) is a quantum computing company based in Maryland. It develops generalized quantum computing systems and gives access to quantum computers through qubits capacities. It makes access for quantum computers through cloud-based platforms, including Amazon (AMZN) Web Services (AWS), Google (GOOGL) Cloud, and Microsoft’s (MSFT) Azure Quantum. It also provides consulting services on co-developing algorithms using their quantum computer system.
Valued at $1.9 billion by market cap, the small-cap company is a member of the Russell 2000 Index (RUT).
IONQ stock has been volatile this year, down 25.6% so far in 2024. However, the stock has bounced sharply from its mid-April lows, up more than 32% in less than a month.
IONQ Reports Q1 Earnings
IonQ reported its Q1 results last week on May 8, with revenue rising 77% year-over-year to $7.58 million, beating Wall Street's consensus estimates by 8.31%. The quarterly loss widened to $39.6 million, or $0.19 per share, but topped expectations for a loss of $0.26 per share. IONQ ended the quarter with a robust cash reserve of $434 million.
The company expects revenue for the current quarter between $7.6 million and $9.2 million, with full-year revenue ranging between $37 million and $41 million. IONQ also upwardly revised its booking pipeline guidance for the year to a range between $75 million and $95 million.
What Do Analysts Think of IonQ?
Analysts are optimistic about the quantum computing stock, with a consensus “Moderate Buy” rating. Out of 6 analysts covering the stock, 2 have a “Strong Buy” rating, 1 has a “Moderate Buy” rating, and 3 have a “Hold” rating on the stock.
The most bullish analysts think IONQ can double from here. Following the Q1 earnings results, Needham analyst Quinn Bolton reiterated a “Buy” rating on IONQ along with a price target of $18, signifying an upside potential of 95.2%. Meanwhile, Richard Shannon of Craig-Hallum reiterated his “Buy” rating, with a Street-high price target of $21 - implying expected upside of nearly 128%.
The mean price target for IONQ is $15.56, reflecting a 68.8% potential upside from current levels.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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