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

We recently published Trending Analyst Calls: 10 Stocks to Buy and Sell. IonQ, Inc. (NYSE:IONQ) is one of the trending analyst calls.

Bryn Talkington, Managing Partner of Requisite Capital Management, explained in a recent program on CNBC why she sold her position in IONQ Inc (NYSE:IONQ), a quantum computing hardware and software company. The analyst continues to believe in the potential of the quantum computing company, but thinks it will take several years for it to bear fruit.

“I actually bought it last quarter after listening to their earnings call which I listened to a couple times. You need a dictionary because they’re talking about cubits and things like that. These are research companies whether it’s Ion or D-Wave. These are research companies. IonQ I think is the best. They continue to buy I would call research teams that are doing really cool stuff but I’m telling you these are very long long time before this company makes money. I think that these stocks have caught hold by a lot of viewers on X. They become momentum plays and so when I buy one of these companies, I’m buying it to make money and I bought it in the 30s. I sold it at 70 and I’m going to take my toys and go home and if it comes back down, I will buy it back. I do think the quantum computing is a really interesting technology, but I’m telling you, it’s five, six, seven years out and these stocks make no sense on any valuation metric that you could even remotely find.”

Wasatch Long/Short Alpha Fund stated the following regarding IonQ, Inc. (NYSE:IONQ) in its Q4 2024 investor letter:

“Among shorts, detractors are those stocks that rose in price. One of the largest among this group was IonQ, Inc. (NYSE:IONQ), a quantum computing company. IonQ announced a new contract win during the period. But the stock’s rise was likely due more to news that Google had unveiled a new quantum chip that drastically reduces computation times. This news heightened investor enthusiasm for the field of quantum computing. However, we believe enthusiasm surrounding the company is out of touch with the company’s fundamentals, and we continue to hold a short position in the stock.”

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Disclosure: None. This article is originally published at Insider Monkey.