Should You Invest in Quantum Computing Stocks During the TACO Trade?

Group 1: Market Overview - Quantum computing stocks have experienced significant volatility, with IonQ and Rigetti Computing seeing substantial price increases in 2024, followed by declines in 2025 [7][12] - The S&P 500 and Nasdaq Composite indexes have shown breakeven returns for the year, indicating a challenging environment for investors [1][3] Group 2: TACO Trade Explanation - The "TACO" trade refers to market reactions to tariff rhetoric from the President, where stocks drop on tough talk but rebound when pressure eases [5] - This trade represents a strategy of buying dips during periods of abnormal price depression [5] Group 3: Quantum Computing Stocks Performance - IonQ shares increased by 237% and Rigetti by 1,450% in 2024, but both have since declined by 12% and 28% respectively as of June 5, 2025 [7][12] - Combined revenue for IonQ and Rigetti over the last 12 months is approximately $50 million, with a net loss of $460 million, raising concerns about their valuations [10][11] Group 4: Valuation Concerns - Current price-to-sales ratios for IonQ and Rigetti appear inconsistent with their underlying fundamentals, suggesting overvaluation [8][12] - Despite the narrative surrounding quantum computing, the actual performance of these companies does not support their trading levels [11][12] Group 5: Investment Outlook - Given the current valuations and performance, IonQ and Rigetti are not considered good candidates for "buying the dip" [12] - Continued valuation compression is anticipated for both companies, with potential further declines in share prices [13]