- IonQ (IONQ) stock provides investors with pure-play exposure to an intriguing market niche.
- The stock has fallen from its high and appears to be trading at a steep discount.
- Technology-sector investors should consider building a moderately sized position in IONQ stock.
Maryland-based IonQ (NYSE:IONQ) specializes in quantum computing. It’s fine if you don’t know everything about the technology itself — you can still take advantage of a tech-market bargain today with IONQ stock.
Here’s a quick summary of quantum computing: it uses the properties of subatomic particles to perform simulations and calculations which would not otherwise be practically achievable with a standard computer. Amazingly, quantum computing’s total addressable market is projected to grow to $65 billion by 2030.
IONQ stock is directly and deeply connected to the quantum computing industry. However, you’ll want to believe in the company itself — not just the industry — if you’re going to invest with confidence.
Moreover, you might need to flex your contrarian muscles, as IONQ stock isn’t a darling of the markets at the moment. This presents a window of opportunity, though, for anyone targeting a possible share-price doubling.
What’s Happening with IONQ Stock?
Going back to the beginning, IonQ offered its shares for public trading on the New York Stock Exchange on Oct. 1, 2021 after reverse-merging with dMY Technology Group III. The share price surged from $10 to a pinnacle of $35.90 on Nov. 17 of that year.
More recently, the stock fell back below $15 and now trades below $12. If IonQ’s investors can get their mojo back, there’s upside room to $30 and potentially a 2x move or greater.
Wall Street might not see the full value of IONQ stock right now, but this doesn’t mean the company isn’t an innovator and a game changer. Indeed, the company was recently listed on the TIME100 Most Influential Companies list.
IonQ President and CEO Peter Chapman underscored the significance of this listing:
“TIME’s recognition of quantum computing’s impact, and its specific recognition of IonQ’s role as an industry leader underscores the viability and promise of what’s possible as we usher in the era of quantum computing.”
So, clearly IonQ is a vital competitor in quantum computing. Is there data to quantify the company’s progress, though?
An Outstanding Year
Indeed, there is quantifiable evidence that this quantum computing pioneer is in good financial standing.
Upon the release of IonQ’s full-year 2021 results, Chapman was effusive, calling the year “outstanding” for his company. This wasn’t empty boasting, as Chapman pointed out IonQ tripled its initial bookings target.
Let’s break down the specific numbers on this. For full-year 2021, IonQ recorded $16.7 million in total contract bookings for a 5% beat compared to the prior forecast. 2021’s fourth quarter was particularly strong, with IonQ reporting $1.5 million in total contract bookings for a 115% beat.
Did this success in bookings translate to strong revenue generation? It did, as we can observe that IonQ achieved $2.1 million in full-year 2021 revenue. That’s 31% higher than the $1.6 million it had forecast during the company’s third-quarter call.
Not only that, but IonQ ended 2020 with cash, cash equivalents and investments valued at $603 million — not too shabby.
It’s also encouraging to know the company is looking forward to another year that could be as “outstanding” as 2021. Specifically, IonQ anticipates its revenue will be in the range of $10.2 million to $10.7 million for 2022.
The bookings momentum should continue, as well. Thus, IonQ expects full-year 2022 bookings to be valued in a range between $20 million and $24 million.
What You Can Do Now With IONQ Stock
Quantum computing could represent the future of computing as we know it. IONQ stock presents a way to achieve direct exposure to this niche market.
Plus, the company is posting financial results that could be described as “outstanding.” Therefore, feel free to consider a moderate stake in IonQ while the share price is still below $15.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.