Analyst Says This Quantum Computing Stock’s Valuation ‘Makes No Sense’

Core Insights - IonQ, Inc. (NYSE:IONQ) is a trending stock in the quantum computing sector, with mixed sentiments from analysts regarding its investment potential [1][3] - The company is recognized for its innovative research teams and advancements in quantum computing technology, but analysts caution that profitability may take several years to materialize [2][3] Analyst Sentiment - Bryn Talkington, Managing Partner of Requisite Capital Management, sold her position in IonQ, citing a belief in the company's long-term potential but acknowledging a lengthy timeline for financial returns [1][2] - The stock has gained attention as a momentum play, with Talkington noting that it was purchased in the 30s and sold at 70, indicating significant volatility [2] Market Reactions - IonQ's stock price increased following a new contract announcement and news of Google's quantum chip, which has generated heightened investor enthusiasm for the quantum computing field [3] - Despite the stock's rise, Wasatch Long/Short Alpha Fund maintains a short position, arguing that the enthusiasm is disconnected from the company's fundamentals [3] Comparative Analysis - While IonQ shows potential, some analysts believe that other AI stocks may offer better returns with lower risk, suggesting a competitive landscape in the tech sector [3]