IonQ Inc

IonQ, Inc. (NYSE: IONQ) is a quantum computing company. The Company is engaged in quantum computing and develops general-purpose quantum computing systems. The Company has developed custom hardware, custom firmware, and an operating system to arrange the quantum computers.

Business and Financial Updates:

• Second Quarter 2023 Financial Highlights: During the second quarter, IonQ achieved a noteworthy revenue of USD 5.5 million, surpassing the upper limit of the previously projected range. This growth of 111%, in comparison to the prior year's USD 2.6 million, is primarily attributed to the accelerated progress of one of IonQ's customer contracts, resulting in revenue shifting into the second quarter. Notably, new bookings for the quarter totaled USD 28.0 million, contributing to a year-to-date sum of USD 32.2 million. As of June 30, 2023, IonQ maintained a strong financial position with USD 509.2 million in cash, cash equivalents, and investments. The net loss for the quarter stood at USD 43.7 million, while the Adjusted EBITDA loss was USD 19.4 million. This EBITDA figure excludes a non-cash loss of USD 15.5 million linked to the alteration in the fair value of IonQ's warrant liabilities.
• Commercial Highlights: IonQ has entered a partnership with QuantumBasel to establish a quantum data center in Europe, which will house IonQ systems capable of achieving up to #AQ 35 and #AQ 64. Additionally, IonQ's collaboration with South Korea's Ministry of Science and ICT is set to position IonQ as a key educational resource for Korean students, researchers, and industry professionals. A meeting with South Korea's President, Yoon Suk Yeol, emphasized how IonQ's quantum computing can contribute to the nation's economic acceleration. Furthermore, IonQ has expanded access to IonQ Forte, making the power of #AQ 29 available to developers worldwide, with recent benchmarks validating its performance.
• Technical Highlights: IonQ's collaboration with Oak Ridge National Laboratory resulted in the publication of a manuscript focusing on modeling the molecular structure of the benzene molecule using a quantum computer. This marks a significant advancement in quantum chemistry algorithms. IonQ's ambitious plan includes the development of an #AQ 64 system by the end of 2025, with the aim of achieving quantum advantage for specific use cases, rendering classical computers inadequate for simulating IonQ systems. Detailed technical information and upcoming product specifications are expected to be unveiled at the Quantum World Congress on September 27th.
• 2023 Financial Outlook: IonQ has revised its revenue projection for the full year 2023, now ranging between USD 18.9 million and USD 19.3 million. Anticipated revenue for the third quarter of 2023 falls to USD 4.8 million to USD 5.2 million. The company is also increasing its bookings outlook for the full year 2023, ranging from USD 49 million to USD 56 million, projecting over 100% growth in bookings year-over-year at the midpoint. Recognizing elevated demand, IonQ aims to sell several systems over the next 18 months, tailored to different customer requirements. The company's guidance is based on a probability-weighted average of its pipeline, accounting for potential sales within the 2023 timeframe.

Technical Observation (on the daily chart)

Currently, the stock is currently near an important resistance level of USD 15.00-USD 17.00, from where price has taken resistances in the past. A further correction from the current level is expected to the support levels of USD 10.00- USD 12.00 before a continuation of the move towards upside. The RSI (14 period) momentum indicator is at a value of 51.64, with expectations of further consolidation or a short-term correction. Moreover, the price is currently positioned between both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term resistance and support levels.

As per the above-mentioned price action, key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given IonQ, Inc. (NYSE: IONQ) at the current market price of USD 15.60 as of August 15, 2023, at 09:45 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is August 15, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

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