Jim Cramer Says IonQ is a “Trading Vehicle”

IonQ, Inc. (NYSE:IONQ) is one of the stocks that was recently put under the microscope by Jim Cramer. A caller asked Cramer about the stock, mentioning that the company initially seemed speculative to them but noting that Alphabet has since developed a quantum chip. Cramer replied:

“Sure… yes, they have. Now, look, this stock was at 84, 10 days ago. It is now down all the way to $59. It was at $54. I think that it’s going to get some money from the government. It’s going to run up again, and then you’re going to have to trim it again. It’s a trading vehicle. I like investing situations.”

Photo by Anton Maksimov juvnsky on Unsplash

IonQ, Inc. (NYSE:IONQ) provides access to quantum computers through major cloud platforms and its own services. The company offers hardware systems, quantum-safe networking, and detection technologies. Cramer mentioned the company during the October 10 episode and said:

“I’m going to start naming the names of these impoverished growth companies, the ones that have been bid up furiously and will likely need to do stock offerings because they’re desperate to raise money. That’s what happened in the great internet crash of 2000…

Case in point, IONQ… That’s a huge loss-making quantum computing company with a stock that had bid up aggressively by retail to the point where it rallied 85% for the year as of last night’s close. Then this morning, IONQ just offered 2 billion shares… It was a complex deal, but it knocked the stock down almost 9% today. I think this offering will be the first of many, and they could weigh on all of these stocks.”

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