NYSE: IONQ
Key Data Points
How to buy IonQ stock
Because IonQ is publicly traded, the process of buying shares is very similar to buying shares of any other public company. Here's what you need to know to add shares of IonQ to your portfolio.
- -Step 1: Open your brokerage app: Log into your brokerage account where you handle your investments.
- -Step 2: Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- -Step 3: Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- -Step 4: Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- -Step 5: Submit your order: Confirm the details and submit your buy order.
- -Step 6: Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Stock
In 2024, IonQ exceeded management’s prior guidance as it delivered full-year revenue of $43.1 million, up 95% from the previous year. It delivered full-year bookings of $95.6 million, ending the year with cash and investments on hand of about $364 million. The company also announced numerous developments for the business. These included a new $21.1 million project with the Air Force Research Lab on addressing crucial quantum networking needs for national security, a partnership with the University of Maryland and the State of Maryland, and the renewal of its agreement with the Abu Dhabi Quantum Research Center Technology Innovation Institute in the United Arab Emirates.
While all of these developments are impressive, there are reasons why some investors may want to stay away from this business. Like other companies in this space, IonQ's costs and expenses, including research and development (R&D), general and administrative spending, and other operational costs, are growing faster than its revenue. The company has a long history of financial losses and faces significant competition from well-funded technology giants and specialized start-ups. IonQ is in the early stages of its growth story, and investors will need to be fairly risk tolerant with a generous investment horizon to put cash into this business.
Is IonQ profitable?
IonQ is not currently profitable and has reported serious net losses, including a $331.6 million net loss for 2024. It has also yet to report anything but negative cash flows. Many quantum computing companies like IonQ are focused on research and development, and it may take time for them to generate commercial revenue streams.
Does IonQ pay a dividend?
IonQ does not pay a dividend. Given that IonQ is not reporting positive earnings or cash flow at this point, the likelihood of a dividend seems extremely low at any point in the near future.
Exchange-Traded Fund (ETF)
Will IonQ stock split?
IonQ has never split its stock. A stock split is when a company divides its existing shares into multiple shares, effectively lowering the price per share while maintaining the overall company value. IonQ went public in 2021 through a business combination with a special purpose acquisition company (SPAC). It has never traded above $60 a share.
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The bottom line on IonQ
Any investor looking at IonQ as a potential buy will have to decide whether the stock aligns with their overall goals and portfolio objectives. The company is a major player in the quantum computing industry with lucrative contracts with government and commercial players, including some of the largest tech companies in the world. IonQ's trapped-ion technology is seen as a leading approach that is capable of achieving high qubit counts and potentially lower error rates compared to other quantum computing platforms.
IonQ has consistently reported net losses, raising concerns about its long-term sustainability. The company has raised significant capital through equity offerings, but its reliance on external funding rather than generating profitability could be a concern in the long run. The quantum computing industry is still in its early stages, and companies like IonQ are investing heavily in research and development, leading to high costs and potential losses before widespread commercialization and profitability become an attainable reality.
Some investors remain unconvinced about the immediate practical applications and long-term commercial success of quantum computing, leading to concerns about IonQ's future. Advances by competitors, especially those with larger financial resources, could challenge IonQ's position. Broader economic concerns, like recessionary headwinds, could also negatively impact quantum computing stocks, including IonQ.
For investors who want to have a position in a company with a leading presence that is also a pure play in the emerging quantum computing landscape, IonQ could be worth a second look. Investors looking for a less risky business or a more profitable venture with low industry volatility might want to look elsewhere.
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