IonQ (IONQ) shares have slid more than 30% this month, which the article links to fears of shareholder dilution and a broader sell-off in tech and quantum stocks. Second-quarter revenue topped $80 million, up 287% year over year, yet the company posted a $120.3 million EBITDA loss last quarter. Earlier in October, IonQ agreed to acquire Elisity in an all-stock deal valued at $1.3 billion and then announced a $2 billion equity offering two days later. The company ended Q2 with $3 billion in cash, equivalents and investments, though its trailing price-to-earnings ratio remains above 100. The author says the stock may appeal to risk-tolerant, patient investors if growth outpaces dilution and spending, but is staying on the sidelines until IonQ shows a path to profitability.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
quantum computingIonQmergers and acquisitionsvaluation
Open a keyword to see other news on the same topic.
Related news
- Is IonQ Stock A Buy Today, Down By Half In A Year?
IonQ (IONQ) stock fell 50.3% over the past year, while the S&P 500 returned 17.1%, even as management called the second quarter of 2026 its fifth consecutive record quarter. A buyer pays 46.6 times trailing sales, versus 3.1 times for the S&P 500, for revenue of $246 million in the twelve months to June 30, up 370.6%, with organic revenue up 132% in the second quarter. Remaining performance obligations rose to $485 million from $122 million a year earlier, while the operating loss equaled 408.2% of revenue. IonQ held $2.1 billion in cash and short-term investments, priced a $2.0 billion equity offering on October 14, and agreed to buy Elisity in an all-stock deal worth up to $1.3 billion, which will dilute existing shareholders when it closes. The next report, expected around November 11, 2026, will be the first to cover a quarter in which IonQ owned SkyWater, bought for $1.8 billion.
- Is 50% Crash Risk For IonQ Stock Real?
IonQ stock fell at least 50% within the year in four of the last five calendar years, and is down 43.6% over the past year while the S&P 500 gained 15.1%. The company just priced a $2.0 billion share sale, which its CEO said will speed up commercialization of its full-stack quantum platform. Upcoming catalysts include the first revenue outlook combining IonQ with chipmaker SkyWater (acquired July 31, 2026), commissioning of 256-qubit customer systems starting in the first half of 2027, and the all-stock Elisity deal worth up to $1.3 billion, or about 11% of IonQ's $11.5 billion market value. The article notes shares remain 56.6% below their May 29, 2026 close of $72.07 after a 57.7% fall ending March 30, 2026.
- Prediction: This Will Be the Best Pure-Play Quantum Computing Stock Over the Next 5 Years
The author believes quantum computing is advancing faster than most investors realize, with the timeline for commercially viable machines moved up from 2030 to 2029. The article names IonQ (IONQ) as the author's top quantum computing pick, citing its 256-qubit system, expected to start selling in early 2027, with some preorders already placed. IonQ has also acquired SkyWater for in-house chip manufacturing and bought cybersecurity provider Elisity for $1.3 billion. The author warns the company could fall to $0 and suggests investors could allocate about 1% of their portfolio so that a failure would not be a huge loss.
- IonQ Is Following Nvidia's Playbook. Why the Stock Could Be a Buy After a 60% Dip.
IonQ CEO Niccolo de Masi wants the company to become the Nvidia of quantum computing by controlling the entire quantum ecosystem, and the author says IonQ is following Nvidia's acquisition-driven playbook. Key deals include Oxford Ionics in 2025, whose EQC chip technology helped IonQ reach a record 99.99% two-qubit gate fidelity and reduce reliance on bulky laser arrays, plus Lightsynq and Qubitekk for quantum networking and the SkyWater quantum foundry for vertical integration. IonQ also bought ID Quantique last year for quantum cryptography and has announced its acquisition of Elisity to build an end-to-end security platform. With the stock down around 60% from its highs, the author sees a high-risk, high-reward opportunity.
- IonQ Just Made a Major $1.3 Billion Move. Time to Buy?
IonQ, a pure-play quantum computing company using trapped-ion technology, agreed to buy Elisity, a zero-trust cybersecurity company, in a $1.3 billion deal. The article says the acquisition gives IonQ a security platform designed to be quantum-proof, since quantum computers could eventually bypass current encryption, and it brings IonQ closer to rivals such as Microsoft, Alphabet and IBM. IonQ is developing a 256-qubit computer expected in early 2027. The stock dropped nearly 10% after the announcement, which the author considers short-sighted.
- IonQ Falls 6% as $2B Equity Offering Follows $1.3B Elisity Stock Deal; D-Wave and Rigetti Retreat 4%
IonQ shares fell 6% to $32.76 after the company priced a $2 billion equity offering, just days after agreeing to buy cybersecurity firm Elisity in an all-stock deal worth up to $1.3 billion. The offering sold common stock and pre-funded warrants to an entity managed by Heights Capital Management, along with seven-year warrants for 100 million additional shares, with J.P. Morgan as sole underwriter. Other quantum stocks also declined, with D-Wave down 4% to $12.87, Rigetti down 4% to $12.26, and the Defiance Quantum ETF down 2%. IonQ reported Q2 2026 revenue of $80.05 million, up 286.8% year over year, and raised its 2026 outlook to $280 million to $290 million, while stock-based compensation reached $141.8 million in the quarter. The key question is whether revenue can grow faster than the expanding share count.
Related markets
Latest news
- Amazon shares fall as weaker Q4 outlook offsets 39% AWS growth
Amazon shares fell around 6% on Thursday evening as fourth-quarter guidance came in below expectations, despite strong growth at AWS. Third-quarter revenue reached $201.9 billion, up 12% year over year but slightly below the $202.3 billion analyst estimate, and earnings per share of $1.89 missed the $1.96 consensus. AWS sales rose 39% to $46 billion, its fastest pace in nearly five years, with operating income of $17.8 billion. The company forecast fourth-quarter revenue of $240 billion to $247 billion, below the $244.5 billion consensus at the midpoint, while advertising revenue of $19.6 billion missed estimates. Capital expenditure hit $77.3 billion against estimates of $57.5 billion, pushing trailing 12-month free cash flow to negative $42.4 billion, and net income included a $9.5 billion pre-tax gain tied to Anthropic. CEO Andy Jassy expects AWS to grow more than 40% in both 2027 and 2028.
- Federal Reserve Board announces approval of application by The Bank of Nova Scotia
The Federal Reserve Board approved The Bank of Nova Scotia's application, based in Toronto, Canada, to become a bank holding company by acquiring Maple Financial Holdings, Inc. of Dallas, Texas. This indirectly gives it control of MapleMark Bank in Tulsa, Oklahoma.
- Amazon's 3Q results miss analysts' estimates, but posts solid sales gains in cloud computing unit
Amazon's fiscal third-quarter results fell short of analyst expectations, but AWS sales grew 39.3%, the fastest pace in nearly five years and up from 37% in the prior quarter. The company gave a cautious outlook for the fourth quarter, including the holiday shopping period, and shares fell more than 6% in after-hours trading. Amazon plans to hire 300,000 U.S. seasonal workers for the shopping season, up from 250,000 last year. Capital spending, mostly on AI, is now expected to total $220 billion, up from the $200 billion plan announced in February, and CEO Andy Jassy said even that level would not meet all demand this year. Alphabet's weaker-than-expected report and capital spending topping $51 billion have raised concerns about AI spending across the industry.
- Google Burned Through $9 Billion in Cash Last Quarter, and Wall Street Shredded Alphabet Stock for It
Alphabet's free cash flow was negative $9.1 billion as capital spending reached $51.4 billion, and search results missed estimates. The article weighs this against Google Cloud's 103% growth and argues that the Microsoft playbook could still reward long-term investors.
- Reddit shares sink on weak sales guidance and plans login requirement test as Google search traffic shrinks
Reddit beat estimates in the third quarter with EPS of $1.40 versus $1.35 expected and revenue of $895 million versus $878 million, but its shares fell over 11% on weak fourth-quarter guidance of $1 billion to $1.03 billion, below the $1.05 billion Wall Street estimate. The company plans to require users to create official accounts to access the platform, with testing starting in the fourth quarter outside the U.S., as CEO Steve Huffman said shrinking search referral traffic from Google has played a major role. Daily active uniques rose 12% year over year to 130.3 million but trailed the 133.7 million estimate, while U.S. DAUq fell 2% to 50.7 million. Huffman said the company is still growing at an industry leading rate and is focusing on app users and logged-in users, who generate most of its revenue. Its other revenue segment, including data licensing, rose 35% year over year to $48 million, and Reddit is still negotiating its data-licensing deal with Google.
- How major US stock indexes fared Thursday 10/29/2026
U.S. stocks fell Thursday as a historic drop in Alphabet, which posted weaker-than-expected growth, weighed on the market, raising concerns about whether huge AI investments will pay off, even though most stocks rose. The S&P 500 fell 23.59 points, or 0.3%, to 7,720.39, the Dow lost 132.54 points, or 0.3%, to 52,342.56, and the Nasdaq composite fell 365.13 points, or 1.4%, to 26,184.72. The Russell 2000 rose 28.71 points, or 1%, to 2,859.22. For the week, the S&P 500 is up 96.71 points, or 1.3%, and the Nasdaq is up 229.38 points, or 0.9%, while for the year the S&P 500 is up 12.8% and the Nasdaq is up 12.7%. Treasury yields fell.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.