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Chris Neiger, The Motley Fool
Sat, Apr 5, 2025, 5:35 AM 4 min read
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Quantum computing has captured the attraction of investors. The anticipation is that quantum computing volition acold outpace the capabilities of today's supercomputers, allowing for caller developments successful clime modeling, artificial intelligence, materials science, and elsewhere.
The imaginable translation crossed galore industries could besides beryllium lucrative. McKinsey estimates that gross from this exertion conception could beryllium worthy trillions of dollars implicit the adjacent decade. And 1 specified institution that's already benefiting from a surge successful capitalist involvement for quantum computing is IonQ (NYSE: IONQ), with its stock terms skyrocketing 127% implicit the past 12 months (as of this writing).
But what's happening with IonQ close present that's fueling this interest, and wherever could the quantum computing banal beryllium 1 twelvemonth from now? Here's wherever I deliberation the institution is headed.
IonQ reported awesome gross maturation successful 2024, with income rising 95% to $43.1 million. IonQ besides gained $95.6 cardinal successful caller bookings, up 47% from the erstwhile year. Management estimates the institution volition proceed a coagulated maturation trajectory this year, with gross expected to astir treble to $85 million, astatine the midpoint of guidance.
The institution ended the twelvemonth with a currency equilibrium of implicit $700 million, which should springiness IonQ immoderate runway to proceed expanding its business. But it's not each sunshine and rainbows for IonQ close now. The institution had a nett nonaccomplishment of $331.6 cardinal successful 2024, up from a nonaccomplishment of astir $158 cardinal successful the erstwhile year.
I don't expect IonQ, which is simply a high-growth company, to beryllium profitable conscionable yet, but it's important to enactment that its losses are widening astatine a clip erstwhile determination is plentifulness of uncertainty successful the economy.
Speaking of uncertainty, there's a ton of it successful the tech assemblage close now. Tech stocks person been tumbling recently, and IonQ isn't immune. Its stock terms is down 44% implicit the past 3 months (as of April 2).
Stocks tin beryllium volatile, truthful that's not precisely the problem. The contented is that immoderate economists person accrued their estimates for a recession materializing soon, and galore companies are increasing progressively concerned, too. A caller CNBC survey recovered that 60% of CFOs deliberation a recession is coming this year, with an further 15% reasoning it'll travel aboriginal adjacent year.
IonQ has experienced important income maturation astatine times erstwhile the system was strong, but it's chartless however good it'll bash if and erstwhile different tech companies are little consenting to walk wealth connected caller quantum computing services they whitethorn not need.
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