Where Will IonQ Be in a Year: A Look Ahead

Investors have shown keen interest in quantum computing. They anticipate that this technology will vastly surpass the performance of current supercomputers, paving the way for advancements in areas such as climate modeling, artificial intelligence, materials science, and more.

The significant changes across various sectors might also lead to substantial profits. According to McKinsey, the economic value generated by this technological sector could reach into the trillions of dollars within the coming ten years. One company that’s already seeing benefits due to increased investor enthusiasm towards quantum computing is IonQ (NYSE: IONQ) , where its stock price has surged by 127% in the last 12 months (at the time of writing).

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However, what’s currently driving the interest in IonQ, and where might things go from here? quantum computing stock In one year from now, here's where I believe the company is heading.

What's happening with IonQ?

In 2024, IonQ saw significant revenue expansion, with sales increasing by 95% to reach $43.1 million. The firm secured an additional $95.6 million in new orders, marking a rise of 47% over the prior year’s figures. Company leadership anticipates steady progress going forward, projecting revenues to almost double to around $85 million when considering the mid-point of their forecast range.

The firm concluded the year with more than $700 million in cash, providing IonQ with sufficient capital to keep growing its operations. However, things aren’t entirely positive for IonQ at present. In 2024, the company reported a net loss of $331.6 million, an increase from the approximately $158 million deficit recorded in the prior year.

I'm not expecting IonQ, being a rapidly growing firm, to turn a profit immediately; however, it's crucial to recognize that its losses are expanding during an economically uncertain period.

What factors might affect the company within the coming year?

When we talk about uncertainty, the technology industry is currently saturated with it. Recently, tech stocks have experienced significant declines, and IonQ is not exempt from this trend. In fact, its stock price has dropped by 44% within the last three months, up until April 2nd.

Shares can indeed fluctuate significantly, which isn’t the core concern here. The real issue lies in certain economists raising their forecasts for a near-term economic downturn, leading numerous businesses to become progressively worried as well. According to a recent CNBC poll, 60% of Chief Financial Officers anticipate a recession occurring before the end of this year, while another 15% predict one will start at the beginning of the following year.

IonQ has seen substantial sales increases during periods of economic strength, yet it remains unclear how robust their performance will be if other technology firms become more hesitant to invest in new quantum computing services they might consider non-essential.

This doesn’t imply that the company will automatically decelerate if the economy does; however, quantum computing remains a theoretical concept at present. Consequently, investors ought to recognize that the remarkable technological expansion witnessed in recent years may not continue at the same pace in the coming years.

It might be wise to hold off on purchasing IonQ at this moment.

Quantum computing has the potential to be a huge market, yet numerous uncertainties remain. Even those within the field acknowledge that viable applications may still be decades off.

Despite IonQ's recent drop in share price, its stock remains somewhat valuable. price-to-sales The ratio stands at 109, which makes it quite costly for any stock, especially considering that the overall technology sector seems to be decelerating. At this point, it might be wise to refrain from investing in it.

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Chris Neiger The Motley Fool does not hold any shares in the stocks discussed. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .