Core Insights - The upcoming fourth-quarter 2025 earnings season is critical for three quantum computing companies: D-Wave Quantum, Rigetti, and IonQ, as it will reveal their ability to convert quantum technology into revenue [1][11] Group 1: Company Performance - IonQ's third-quarter revenues increased by 222% year over year, with expectations for fourth-quarter revenues to surpass the third quarter [2][18] - D-Wave reported nearly doubled revenues of $3.7 million in the third quarter, with record bookings of $2.4 million and a strong pipeline, including a €10 million contract [8][11] - Rigetti's third-quarter revenues were $1.9 million, down year over year, but recent orders and contracts are expected to improve fourth-quarter revenues [14][15] Group 2: Market Sentiment and Stock Performance - During the fourth quarter of 2025, D-Wave's stock gained 2%, while Rigetti and IonQ saw declines of 25.8% and 28.9%, respectively, due to investor skepticism about high valuations and broader tech sentiment [4][5] - The overall market sentiment weakened in late 2025, leading to significant stock corrections for these companies [5] Group 3: Financial Outlook - D-Wave's fourth-quarter revenue growth is expected to be gradual due to deferred revenue recognition from multi-year contracts, despite strong bookings exceeding $12 million [9][12] - Rigetti is projected to report fourth-quarter earnings growth of 37.5% on revenue growth of 17.7%, with no formal guidance for 2025 [16][17] - IonQ is expected to report fourth-quarter earnings growth of 48.4% on revenue growth of 244.2%, supported by strong commercial interest and a robust cash position of about $3.5 billion [20][19] Group 4: Investor Strategy - Investors are advised to adopt a long-term allocation strategy in this emerging sector, given the volatility and valuation sensitivity of these quantum computing stocks [21]

Core Insights - IonQ is leading the quantum computing sector with significant technical advancements and commercial growth, particularly in achieving industry-leading two-qubit gate fidelity, which is crucial for scalable quantum systems [1][8] - The company has expanded its partnerships with enterprise and research customers, indicating increased confidence in its technology and a clearer revenue path [2] - IonQ's financial performance shows strong growth, with Q3 2025 revenues reaching $39.9 million, a 222% increase year-over-year, and exceeding guidance by 37% [4][8] Technical and Commercial Progress - IonQ's two-qubit gate fidelity reached 99.99%, which reduces error correction overhead and lowers scaling costs, positioning the company ahead of competitors [4][8] - The company is on track to deliver its Tempo and Forte Enterprise systems in 2026, with a 256-qubit system demonstration planned, leveraging standard semiconductor supply chains [5] - IonQ's balance sheet is robust, with $3.5 billion in cash and no debt, allowing for sustained execution without dilution pressure [4][8] Growth Projections - IonQ is projected to achieve earnings growth of 65.8% and revenue growth of 83.3% in 2026 compared to 2025 estimates [6] - Management has guided for Q4 2025 revenues to exceed those of Q3 2025, breaking previous seasonal trends [5] Valuation Comparison - IonQ's forward 12-month price/sales (P/S) ratio is 83.57, significantly higher than the industry average of 4.9X but lower than its peers D-Wave Quantum (165.1X) and Rigetti Computing (308.7X) [9]

Group 1: Quantum Computing Market Overview - Quantum computing is transitioning from theoretical concepts to commercialization, with IonQ and Alphabet identified as key investment opportunities [1] - The quantum computing market is projected to reach $100 billion in a decade, indicating significant growth potential for companies in this sector [4] Group 2: IonQ's Performance and Potential - IonQ achieved a world record in two-qubit gate fidelity with 99.99% performance, marking a significant milestone for the company [2][8] - The company has established partnerships with major entities, including government agencies and tech giants like Amazon and Microsoft, contributing to a growing backlog and increasing demand for its services [3] - IonQ's revenue surged by 222% year-over-year in Q3 2025, although its stock is considered expensive with a price-to-sales ratio of 158 [4] Group 3: Alphabet's Quantum AI Division - Alphabet's Google Quantum AI is a leader in quantum research, with a roadmap that includes six milestones, two of which have already been achieved [5] - The company benefits from substantial financial resources and top-tier talent, allowing it to leverage its other business units for advancements in quantum computing [6] - Alphabet's stock is viewed as an attractive long-term investment, trading at a forward price-to-earnings ratio of just under 30 and a price-to-sales ratio of around 10 [6] Group 4: Investment Outlook - The combination of IonQ's high potential upside and Alphabet's stability positions both companies as strong investment choices for 2026 [7]

Core Insights - Rosenblatt Securities has initiated coverage on shares of both quantum companies with a Buy rating [1] Group 1 - The coverage initiation indicates a positive outlook for the quantum companies, suggesting potential growth and investment opportunities in the sector [1]

Core Viewpoint - The article discusses the volatility of IonQ's stock, highlighting its dramatic sell-off at the end of 2025 and the potential for further declines in 2026 due to its financial profile and the current state of quantum computing technology [1][3][15]. Company Performance - IonQ's stock experienced a significant increase of 73% from January to mid-October 2025, but ended the year with only a 7% gain, indicating a sell-off in the final months [3][2]. - The company generated $68 million in revenue during the first nine months of 2025, exceeding management's guidance [5]. - IonQ's stock price has risen nearly 1,200% since the beginning of the AI revolution, reaching approximately $51 per share [10]. Financial Strategy - IonQ has spent $2.5 billion on acquisitions over the past year to bolster its growth, despite its technology still being in development [6]. - The company has increased its outstanding share count by almost 60% to fund these acquisitions, leading to significant shareholder dilution [8]. Market Position and Valuation - IonQ currently trades at a price-to-sales (P/S) ratio of 158, which is significantly higher than historical peaks for established companies like Cisco during the dot-com bubble [11]. - The article suggests that IonQ's current valuation does not reflect a sustainable business model, as the company lacks a marketable value proposition at this time [15][16]. Industry Context - The quantum computing sector has seen a surge in interest, with stocks like the Defiance Quantum ETF rising 35% in 2025, indicating a growing market despite IonQ's struggles [2]. - The technology remains largely in the research and development phase, with limited commercial applicability at present [4].

Core Insights - IonQ, a leading quantum platform company, has appointed Katie Arrington as Chief Information Officer (CIO), effective January 19, 2026 [1] - Leslie Kershaw will take on a newly expanded role as Chief Information Security Officer, transitioning from her current position at IonQ Capella [1] Company Developments - The addition of Katie Arrington to the executive team highlights IonQ's commitment to enhancing its national security and technology advocacy efforts [1] - The promotion of Leslie Kershaw indicates a strategic focus on strengthening information security within the company [1]

Core Insights - Quantum computing stocks have seen significant price increases, with some rising by up to 5,400% in 2024, attracting investor interest despite skepticism from industry insiders [2][3][10] - The global addressable market for quantum computing is projected to reach $1 trillion by 2035, indicating substantial long-term growth potential [3] - High-profile partnerships with major companies like Amazon and Microsoft are enhancing the visibility and credibility of quantum computing firms [5][6] Company Performance - Quantum computing companies such as IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. are expected to experience triple-digit annual sales growth, with Rigetti's revenue projected to increase from less than $8 million in 2025 to $152 million by 2029 [9] - D-Wave Quantum's revenue is anticipated to rise from less than $26 million in 2025 to $219 million by 2029, showcasing the growth trajectory of these firms [9] Insider Activity - Over the past three years, insiders of quantum computing companies have sold approximately $840 million more in stock than they have purchased, raising concerns about the companies' future prospects [12][13] - Notably, there has been minimal insider buying activity, with Quantum Computing Inc. and Rigetti Computing showing no insider purchases during this period, which may signal a lack of confidence in the stock's future performance [16][17] Market Dynamics - The surge in quantum computing stocks in 2025 was partly fueled by a report from JPMorgan Chase outlining a $1.5 trillion initiative that includes quantum computing as a critical area for investment [7][8] - Despite the excitement surrounding quantum computing, the high price-to-sales ratios of these stocks suggest they may be overvalued, indicating potential market corrections in the future [17][18]

Key Points IonQ believes it technology has use cases in drug development, medical device design, and even industrial materials science. IonQ's stock price has increased nearly 350% in the past five years. The commercial viability of quantum computing is still in its early stages. 10 stocks we like better than IonQ › Quantum computing is moving from the theoretical to the commercially applicable, but only one company has achieved 99.99% two-qubit gate fidelity (a measure of results accuracy). Tha ...

Industry Overview - Quantum computing is an emerging technology with the potential to surpass artificial intelligence, but it is still in its early stages and has not yet been fully developed [2] - The primary challenge in quantum computing is its error-prone nature, which must be addressed before achieving fault-tolerance [3] Company: IonQ - IonQ is a leading company in quantum computing, recently achieving a two-gate fidelity of 99.99%, which, while still error-prone, positions it as a leader in the field [5] - The company utilizes trapped-ion technology, which employs identical atoms for greater stability compared to lab-fabricated qubits [6] - IonQ is developing a comprehensive quantum ecosystem similar to Nvidia's approach with GPUs, focusing on acquisitions to enhance its technology and build a quantum internet [7] Company: D-Wave Quantum - D-Wave Quantum is a pure-play quantum computing company that is close to establishing a viable commercial business model through its quantum annealing technology [8] - The company has a growing customer base and is beginning to ramp up revenue and bookings, focusing on specialized tasks like supply chain optimization [9] - D-Wave is making a significant move into gate-based systems, with over $830 million in cash available for investment, including a recent acquisition of Quantum Circuits for $300 million in stock and $250 million in cash [11]

Core Viewpoint - IonQ's stock has seen significant price increases, but concerns about its valuation and financial performance suggest it may not be a wise investment at this time [1][2]. Company Performance - IonQ's share price has increased over 1,200% since the beginning of 2023, attracting considerable investor interest [1]. - The company reported a revenue increase of 222% in the third quarter, reaching nearly $40 million [6]. - Despite revenue growth, IonQ's non-GAAP loss per share worsened to $0.17, compared to a loss of $0.11 in the same quarter last year [6]. Financial Metrics - IonQ's price-to-sales ratio stands at 140, significantly higher than the technology sector's average of just under 9, indicating a high valuation [4]. - Operating expenses rose to $208 million in the third quarter, up from approximately $65 million in the previous year, contributing to widening losses [7]. Market Context - The quantum computing market remains speculative, with practical applications still years away, as noted by major players like Alphabet [8][9]. - Investor sentiment has been optimistic, but there are signs of a shift, with IonQ's stock gaining only 9% in 2025 compared to the S&P 500's nearly 17% increase [9]. Investment Outlook - IonQ's current stock price is viewed as excessive, with significant losses and an uncertain market future, leading to recommendations against purchasing its shares [11].