What Happened?
Shares of quantum computing company IonQ (NYSE: IONQ) fell 1.9% in the afternoon session after the stock was caught in a broader market sell-off driven by rising Treasury yields that heavily impacted technology stocks.
Investors also reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy IonQ? Access our full analysis report here, it’s free.
What Is The Market Telling Us
IonQ’s shares are extremely volatile and have had 103 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock gained 4% on the news that B. Riley initiated coverage on the quantum computing company with a 'Buy' rating and set a $61 price target.
The investment firm highlighted IonQ's position as a leader in its sector for revenue growth, noting it's on track for a third straight year of approximately 100% year-over-year gains. B. Riley believes this growth could continue through 2028, potentially leading to $1 billion in sales by 2030. The analyst also pointed to the company's strong financial standing, with a $1.6 billion cash balance, which is seen as sufficient to fund its operations until it reaches profitability later this decade. This positive initiation follows other recent analyst actions, including a reiterated 'Buy' rating from Needham and a price target increase from Morgan Stanley, which maintained its 'Equalweight' rating.
IonQ is down 1.9% since the beginning of the year, and at $42.29 per share, it is trading 17.2% below its 52-week high of $51.07 from January 2025. Investors who bought $1,000 worth of IonQ’s shares at the IPO in January 2021 would now be looking at an investment worth $3,916.
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