Why Is IonQ (IONQ) Stock Up 10% Today?

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  • IonQ (IONQ) stock has been explosive lately, rallying more than 65% off the May low while gaining in 10 of the past 11 trading sessions.
  • Shares are rallying on news that the company is expanding its presence on Amazon (AMZN) Braket.
  • IONQ stock is getting a boost as investors start to see the bigger opportunities with the firm.
A concept image of a processor representing quantum computing. IONQ Stock
Source: Amin Van / Shutterstock.com

Shares of IonQ (NYSE:IONQ) continue to gain steam on Wednesday, currently up about 10% on the day. This is just the latest session adding to the massive gains in IONQ stock this week.

On Monday, IONQ rallied more than 15%. Shares then rallied almost 9% on Tuesday. All told, shares are up about 40% from Friday’s close.

Today’s action comes on news that IonQ Aria is now available through Amazon (NASDAQ:AMZN) Braket. According to a news release, “This expands upon IonQ’s existing presence on Amazon Braket, following the debut of IonQ’s Harmony system on the platform in 2020.”

The report continues:

“With broader access to IonQ Aria, IonQ’s flagship system with 25 algorithmic qubits (#AQ)—more than 65,000 times more powerful than IonQ Harmony—users can now explore, design, and run more complex quantum algorithms to tackle some of the most challenging problems of today.”

What is Braket? Amazon describes it as a “fully managed quantum computing service designed to help speed up scientific research and software development for quantum computing.”

This news is giving an obvious boost to IONQ stock, for obvious reasons. However, shares were also on fire long before this announcement.

What’s Driving IONQ Stock Lately?

IONQ stock is now up more than 65% from this month’s low just a few weeks ago. In that span, shares have rallied in 10 of the last 11 sessions. The lone down session? A 9.5% one-day dip on May 12 after the company reported earnings.

For the period, IonQ reported a loss of 14 cents per share, missing expectations by 3 cents. However, the firm topped revenue expectations as sales exploded 120% year-over-year (YOY). While that is an impressive growth rate, bulls need to remember that we’re talking about a business that isn’t doing a lot of sales — yet.

In the quarter, IonQ generated sales of just $4.29 million. While estimates call for robust growth over the coming years, the stock’s near-$2 billion market capitalization means its valuation is high by most measures.

Ultimately, IONQ stock rallied significantly into the report, pulled back, then jumped significantly once again. The news with Amazon just adds to the recent momentum:

“The availability of both Aria and Harmony on Braket gives customers the ability to choose the trapped-ion device that best suits their specific needs. For instance, customers may wish to test out their quantum circuit on Harmony before scaling to the larger and higher fidelity Aria.”

Investors are clearly bullish on this development, particularly given the size and scope of Amazon Web Services (AWS). All in all, IONQ shares saw a one-year high today.

On the date of publication, Bret Kenwell did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/05/why-is-ionq-ionq-stock-up-10-today/.

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