When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about IonQ, Inc. (IONQ) .IonQ currently has an average brokerage recommendation (ABR) of 2.00, on a s ...

IonQ's financial safety net is shrinking fast. Here's what could happen if the money runs out.Pure-play investments in the quantum computing space are often young, small, and financially unstable. Industry-leading quantum computing systems builder IonQ (IONQ 19.82%) collected just $12.4 million in revenues in the third quarter of 2024 while spending $65.5 million on operating costs.IonQ consumes plenty of cashThe company reported negative free cash flows of $24.2 million in the third quarter, consuming a to ...

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Company Performance - IonQ Inc experienced a 12% increase post-Q3 earnings and a 70% rise overall, despite being labeled as "unproven," "risky," and "very negative" by analysts [1] Analyst Perspective - Analysts have described IonQ Inc in terms that might make even the hardiest investors hesitate, using words like "unproven," "risky," and "very negative" [1] Research Principles - Grassroots Trading focuses on providing objective, unbiased, and balanced research backed by solid data, focusing on small- to mid-cap companies and periodically identifying potential opportunities in large- and mega-cap companies [1]

IonQ, Inc. (IONQ) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to loss of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.35%. A quarter ago, it was expected that this company would post a loss of $0.22 per share when it actually produced a loss of $0.18, delivering a surprise of 18.18%.Over the last four quarters, the company has surpassed con ...

Financial Performance and Expenses - The company reported net losses of $129.6 million for the nine months ended September 30, 2024, compared to $115.9 million for the same period in 2023, with an accumulated deficit of $481.7 million as of September 30, 2024[145] - Revenue increased by $6.3 million, or 102%, to $12.4 million for the three months ended September 30, 2024, driven by progress in specialized quantum computing hardware and new revenue contracts[169] - Cost of revenue increased by $4.5 million, or 224%, to $6.5 million for the three months ended September 30, 2024, due to higher hardware and labor costs[170] - Research and development expenses increased by $8.6 million, or 35%, to $33.2 million for the three months ended September 30, 2024, primarily due to higher payroll-related expenses and stock-based compensation[171] - Sales and marketing expenses increased by $1.6 million, or 31%, to $6.6 million for the three months ended September 30, 2024, driven by higher payroll-related expenses[172] - General and administrative expenses increased by $0.4 million, or 3%, to $14.3 million for the three months ended September 30, 2024, due to higher payroll-related expenses[173] - Depreciation and amortization expenses increased by $2.1 million, or 78%, to $4.9 million for the three months ended September 30, 2024, driven by higher depreciation and amortization costs[174] - Revenue increased by $15.4 million, or 97%, to $31.4 million for the nine months ended September 30, 2024, driven by progress in specialized quantum computing hardware and new revenue contracts[177] - Cost of revenue increased by $10.6 million, or 214%, to $15.6 million for the nine months ended September 30, 2024, due to higher hardware and labor costs[178] - Research and development expenses for the three months ended September 30, 2024, included $13.9 million in stock-based compensation, up from $9.5 million in the same period in 2023[168] - Sales and marketing expenses for the three months ended September 30, 2024, included $2.9 million in stock-based compensation, up from $2.0 million in the same period in 2023[168] - Research and development expenses increased by $36.0 million, or 59%, to $96.8 million for the nine months ended September 30, 2024, driven by payroll-related expenses and increased headcount[180] - Sales and marketing expenses increased by $8.2 million, or 72%, to $19.5 million for the nine months ended September 30, 2024, primarily due to payroll-related expenses[181] - General and administrative expenses increased by $6.0 million, or 17%, to $41.4 million for the nine months ended September 30, 2024, driven by payroll-related expenses[182] - Depreciation and amortization expenses increased by $6.3 million, or 91%, to $13.2 million for the nine months ended September 30, 2024, due to capitalized quantum computing system costs and other property and equipment[183] - The change in fair value of warrant liabilities increased by $38.2 million, or 143%, to a gain of $11.4 million for the nine months ended September 30, 2024, due to mark-to-market adjustments[184] - As of September 30, 2024, the company had cash, cash equivalents, and available-for-sale securities of $382.8 million, with an accumulated deficit of $481.7 million[186] - Net cash used in operating activities during the nine months ended September 30, 2024, was $66.3 million, primarily due to a net loss of $129.6 million[191] - Net cash provided by investing activities during the nine months ended September 30, 2024, was $58.4 million, primarily from maturities of available-for-sale securities[193] - Net cash provided by financing activities during the nine months ended September 30, 2024, was $2.4 million, primarily from proceeds from stock options exercised[195] - The company expects to incur significant losses and higher operating expenses for the foreseeable future, with future capital requirements dependent on growth and technology investments[186][187] Partnerships and Collaborations - The company announced a partnership with AstraZeneca to establish a quantum application development center in Gothenburg, Sweden[147] - A partnership with Ansys was formed to accelerate simulation and reduce product development timelines, integrating Ansys software with IonQ computers[147] - A partnership with NKT Photonics was announced to develop next-generation laser systems for future quantum computers, with prototypes expected in 2025[147] - The company partnered with imec to develop photonic integrated circuits and chip-scale ion trap technology, aiming to reduce hardware size and cost while increasing qubit count[147] Contracts and Agreements - The company secured a $54.5 million contract with the United States Air Force Research Lab (AFRL) to advance quantum networking compatibility and deployability over four years[146] - A $9 million agreement was signed with the University of Maryland to expand quantum computing access at the National Quantum Lab at Maryland (QLab)[146] Acquisitions - The company entered into a definitive agreement to acquire substantially all assets of Qubitekk, Inc. for $22.0 million in an all-cash transaction, expected to close within six months[139] Technological Milestones - The company demonstrated remote ion-ion entanglement, a critical milestone for scaling quantum systems[147] Operational Risks and Challenges - The company faces potential increases in operating costs due to inflation, supply chain constraints, geopolitical tensions, and wage increases, which may stress working capital resources[148]

Disclosure and Affiliation - Parkev Tatevosian, CFA has no position in any of the stocks mentioned [1] - The Motley Fool has no position in any of the stocks mentioned [1] - Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services [1] - If users subscribe through his link, he will earn extra money that supports his channel [1] - His opinions remain his own and are unaffected by The Motley Fool [1]

IonQ NYSE: IONQ, a quantum computing company founded in 2015, has taken investors on a wild ride this year. The stock has surged 112% in the past month and is now up 40% year-to-date after rebounding almost 180% from its 52-week low in August. This impressive momentum has left investors wondering if it’s time to sell or if the stock has more room to run. Let’s dive into IonQ’s business and growth prospects to understand better whether it’s a buy, sell, or hold. Get IonQ alerts:What Is IonQ? IonQ TodayIONQIo ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about IonQ, Inc. (IONQ) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. IonQ currently has an average brokerage recommendation (ABR ...

IonQ, Inc. (IONQ) shares soared 17.3% in the last trading session to close at $12.30. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.2% gain over the past four weeks. The upswing in share price came after the company announced it will release its financial results for the quarter ended Sep 30, 2024, on Nov 6, 2024, after market close. It is anticipated that the company will report an EPS of -$0.23, marking a 4.55% fall compar ...