IonQ's Price Target Takes a Hit As The Stock Heads Into Earnings

Shares of quantum computing firm IonQ, Inc. (NYSE:IONQ) trended across social media on Tuesday as catalysts stacked up ahead of the company's fourth-quarter earnings release. 

Here's a look at what investors need to know. 

• IONQ stock is moving. See the chart and price action here. 

Just before the upcoming Q4 earnings report expected on Wednesday afternoon, Morgan Stanley analyst Joseph Moore slashed his price projection for IonQ. 

The new target is $35, down from $58, suggesting modest growth of roughly 13.7%. The analyst kept his neutral Hold rating as the company prepares to share its data on Wednesday evening.

Factors Behind the Cut

Moore's decision to lower IonQ's valuation stems from a shift in investor sentiment and technical hurdles, according to TipRanks. Key concerns include:

• Commercial Hurdles: Ongoing difficulties with qubit stability and high error rates make long-term profitability timelines unclear.
• Market Trends: Similar to competitors like Rigetti Computing, Inc. (NASDAQ:RGTI), IonQ is seeing its valuation shrink as the market favors immediate profits over future potential.
• Growth Outlook: While revenue for the current year may be modest, Moore anticipates management will offer an optimistic forecast for 2026.

Financial and Strategic Outlook

Analysts expect IonQ to report a narrowed Q4 loss of 33 cents per share, according to estimates from Benzinga Pro. 

Revenue is expected to skyrocket to over $40 million, marking a massive yearly increase from less than $10 million in the year-ago period. 

To fuel future expansion, IonQ is finalizing a $1.8 billion acquisition of SkyWater Technology to boost domestic manufacturing. 

Furthermore, the firm secured a spot on the massive SHIELD contract, which features a staggering $151 billion ceiling for Golden Dome defense-related technology.

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