Shares of IonQ (IONQ +6.28%) jumped 13.5% on Thursday before reversing, now up just 6% as of 2:27 p.m. ET. The spike comes as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 0.6% and 0.9%, respectively.
The quantum computing company's stock skyrocketed following a Wall Street Journal report claiming the Trump administration was discussing taking ownership stakes in IonQ and similar companies.
NYSE: IONQ
Key Data Points
The Commerce Department says it is not investing in IonQ
But the stock is down significantly from its peak. Several news outlets, including Reuters, were unable to verify the WSJ report and were told by a U.S. Commerce Department official that the U.S. government is "not currently negotiating with any of the companies."
The revelation that the talks are not taking place reversed momentum for stocks across the quantum market.
IonQ's current valuation should make you pause
Dedicated quantum computing stocks have absolutely blown up over the past year as hype around the nascent tech continues building. The technology has massive promise, but I'm pretty convinced investors are jumping the gun here.
Right now, IonQ's $20.4 billion valuation doesn't make sense given just over $52 million in sales over the last 12 months. The company lost more than $463 million in that same period.
