IonQ: Upside Requires A Quantum Leap Of Faith

Summary:

• IonQ’s stock has surged despite no significant financial performance changes, with large losses and no demonstrated operating leverage.
• Fundamental valuation suggests a fair share value of $5.70, indicating 66% downside from the current price of $17.
• Recommend selling or shorting IonQ shares as potential equity issuance could break stock momentum, leading to a significant decline in share price.

Introduction

Quantum mechanics is a funny subject. An electron can jump between two atomic orbits, without actually going through the intervening space. It just disappears from one state, and appears in the other, either emitting or absorbing

Analyst’s Disclosure: I/we have a beneficial short position in the shares of IONQ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.