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Why IonQ Stock Soared Today

By Chris Neiger – Nov 16, 2021 at 3:46PM

Key Points

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The company has already surpassed its full-year bookings estimate.

What happened

Shares of IonQ, Inc. (IONQ 0.18%), a quantum computing company, skyrocketed higher today after the company released its third-quarter 2021 results. Investors appear to be very happy that management raised IonQ's guidance for full-year bookings guidance for the second time in two months.

The tech stock was up by 35% as of 3:33 p.m. EST. 

So what 

IonQ didn't list any revenue in the third quarter of last year -- the company just went public on Oct. 1 through a special purpose acquisition company (SPAC) merger -- and said that sales for for the third quarter of 2021 reached $0.2 million. 

The company's losses widened in the quarter to $14.8 million, a significant increase from its loss of $3.5 million in the year-ago quarter. 

A silhouette of a woman's face.

Image source: Getty Images.

But investors latched onto the company's full-year booking estimates. Management expects that figure to be $15.8 million, at the midpoint of guidance. 

This is the second time the company has raised its booking estimates. Back in September, management increased full-year booking estimates from the previous $5 million to a revised $15 million. 

But now that IonQ has already surpassed $15 million in bookings at the end of the third quarter, it has now settled on the $15.8 million estimate.

Now what 

Including today's gains, IonQ's stock price has soared 189% since it went public last month. 

While it's good to see the company surpass its booking estimates and raise guidance, investors should consider that IonQ is still a very young publicly traded company. This may cause the company's share price to experience more volatile swings than some other larger, more established companies. 

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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