IonQ Stock Falls 2.5% This Week on Short-Seller Report and Legal Probe Converge

Core Viewpoint - IonQ's stock has experienced a decline of 2.5% over the past week, with a significant drop of 27% since its $1.8 billion acquisition of SkyWater Technology in January, despite Wall Street's bullish outlook on the company [1]. Group 1: Stock Performance - IonQ shares closed at $34.11 on Friday, marking a year-to-date loss of 24% and trading 33% below its starting price in 2026 [1]. - The stock has seen a 33% decline over the past month, with a beta of 2.6 indicating it moves more than twice as much as the broader market [1]. - Despite the recent downturn, IonQ has outperformed many of its quantum peers [1]. Group 2: Short-Seller Report and Legal Investigation - A report from Wolfpack Research on February 6 raised concerns about IonQ's revenue methodology and reliance on U.S. defense funding, leading to an 11% drop in stock price [1]. - Following the report, a securities fraud investigation was initiated by law firm Ademi LLP, focusing on potential revenue inflation and insider trading related to nearly $400 million in stock sales by executives [1]. - Short interest in IonQ has increased to 78.18 million shares, representing 22.77% of tradable shares, up 10.32% since the last report [1]. Group 3: Acquisition of SkyWater Technology - IonQ announced the acquisition of SkyWater Technology for $1.8 billion in cash and stock, aiming to create a vertically integrated quantum platform [1]. - The market reacted negatively, with shares down 28% from the closing price before the acquisition announcement, driven by concerns over cash burn, dilution, and execution risk [1]. - IonQ's stock trades at 57.3 times forward sales, significantly higher than the industry average of 4.9 times, raising questions about its ability to maintain revenue while integrating multiple acquisitions [1]. Group 4: Upcoming Earnings and Analyst Outlook - Analysts maintain a consensus Moderate Buy rating for IonQ, with an average price target of $75.91, suggesting a potential upside of 127% [1]. - Cantor Fitzgerald and Rosenblatt Securities have set price targets of $70 and $100, respectively, despite the stock trading at 141 times sales and burning $408 million in EBITDA annually [1]. - IonQ projects full-year 2025 revenue of $106 to $110 million, indicating a year-over-year growth of 113%, with expectations to reach $192 million in 2026 and $316 million in 2027 [1].