IonQ, Inc. (IONQ) is gaining attention in the fast-growing quantum computing field. For instance, the company’s quantum systems are available on major cloud platforms like Amazon (AMZN) Braket, Microsoft (MSFT) Azure, and Alphabet’s (GOOGL) Cloud. Known for its trapped-ion tech, IonQ aims to change industries like healthcare, finance, and logistics. However, the company still faces challenges in turning its technology into steady profit, which could affect its growth in the long run.
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IONQ Facing Financial Challenges
IonQ has yet to report a profit. In Q2 2024, the company posted a loss of $37.6 million, highlighting its ongoing financial struggles. The company is still working on establishing a steady income stream from its technology, which could raise concerns for investors moving forward.
That being said, investors should remain mindful of the inherent risks associated with investing in emerging technologies like quantum computing.
Stock Price Growth
Although IonQ is still working to achieve profitability, it’s worth noting that the stock has been on an upward trajectory, with analysts expressing optimism about its long-term outlook.
In fact, IonQ’s stock has seen significant growth, rising by 244% over the past year, reflecting the growing interest in quantum computing.
Building on this momentum, recently a five-star analyst, Richard Shannon of Craig-Hallum, raised IonQ’s price target from $22 to $45, keeping a Buy rating. He believes that, despite recent surges in stock price, the quantum computing sector remains small compared to the $1 trillion classical computing market, indicating significant room for expansion.
The Growing Quantum Computing Market
The quantum computing market is still new but growing quickly, with a value expected to reach between $1 billion and $8 billion. This growth is driven by industries needing more advanced computing. Now, whether IonQ can take advantage of this chance depends on how well it can improve its financials and become profitable.
With this in mind, investors looking to gain exposure to Quantum Computing stocks can use the TipRanks Quantum Computing Stocks Comparison tool to find the one that best suits their needs.
