Why IONQ stock soared 47% in May

Shares ionq (NYSE: IONQ)developers of quantum computers and related platforms soared last month, mainly in response to favorable coverage Barron'sand an article aimed at becoming “ Nvidia Quantum computing. ”

Additionally, the company's first-quarter earnings generally meet estimates and benefit from wider risk sentiment in the market due to concerns about the trade war and economic downturn.

The stock is up 47% this month, according to S&P Global Market Intelligence. As can be seen from the chart, share Barron's The May 22 report, but then abandoned some of these earnings next week, as Nvidia's earnings report did not emphasize quantum computing, so the stock's bullish look seems to have disappeared.

YCHARTS IONQ data
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Quantum stocks were usually gathered last month because some investors dared to bet that this could be the next big technology for secondary artificial intelligence (AI), but IONQ is the most valuable of a group of quantum stocks, a special boost on May 22, thanks to coverage Barron'sbecause IONQ soared 37% on that day.

In an interview Barron's"We are in the quantum business like Nvidia," said CEO Niccolo de Masi. Broadcom I believe IONQ will be the Nvidia Player. There will be others who will copy us and follow us. They always copy and follow us. ”

It's a bold statement from a company that reported only $7.6 million in revenue in its first quarter report, or less than 0.1% reported by NVIDIA and BRODCOM.

IONQ also continues to lose money when investing in its technology. In the first quarter, the company reported a net loss of $32.3 million in a recognized accounting principle (GAAP) and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss of $35.8 million.

Last month, the company also signed a Memorandum of Understanding (MOU) with the Institute of Technology and the Institute of Science and Technology (KISTI) of the Center for Supercomputing. According to the Memorandum of Understanding, the two companies will work together to collaborate in multiple areas to advance quantum computing.

After the acquisition of LightSynq, IONQ's full-year revenue ranged from $75 million to $95 million, although a market cap of $10 billion at that level seems difficult, especially when the company reported steady growth in the first quarter.

Investors’ perceptions of quantum computing may consider being in a smaller position in stocks, but considering that it’s easy to drop most of the hype.

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Jeremy Bowman holds positions at Broadcom and Nvidia. Motley fool has a place and recommends Nvidia. Motley Fool recommends Broadcom. Motley Fool has a disclosure policy.

Why May's IONQ Stock was originally published by Motley Fool 47%