Analyst advises against investing in quantum computing firm IonQ, citing high valuation and rapid cash burn despite strong revenue growth
The analyst highlights that IonQ's revenue surged 287% year-over-year to over $80 million in Q2, marking its fifth consecutive record quarter, and the company recently raised its full-year guidance to $280-$290 million. However, IonQ's operating costs and expenses exceeded $417 million in Q2, leading to a cumulative operating loss of $608.8 million in the first half of the year. With a nearly $17 billion market cap and a valuation over 55 times forward sales, the analyst deems the stock too risky due to its high valuation, significant cash burn, and potential for future equity dilution.
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