What Happened?
Shares of quantum computing company IonQ (NYSE:IONQ) jumped 4% in the morning session after 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.
After the initial pop the shares cooled down to $41.94, up 3% from previous close.
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What Is The Market Telling Us
IonQ’s shares are extremely volatile and have had 104 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 1 day ago when the stock gained 4.8% on the news that the stock's positive momentum continued as a regulatory filing revealed that financial giant Morgan Stanley has taken a significant ownership stake in the company.
According to a Schedule 13G form filed with the SEC, Morgan Stanley disclosed a 7.1% passive ownership stake, holding over 18.6 million shares of IonQ's common stock. Such a substantial investment from a major institutional investor often signals strong confidence in a company's future prospects, boosting investor sentiment. Adding to the positive momentum, IonQ recently announced that its intellectual property portfolio has surpassed 1,000 total patents and patent applications. This milestone reinforces the company's position as a leader in the trapped-ion quantum computing space.
IonQ is down 2.7% since the beginning of the year, and at $41.94 per share, it is trading 17.9% 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 $3,883.
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