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:

• Q2 2023 Financial Performance: IonQ achieved a significant milestone with Q2 revenue totaling USD 5.5 million, surpassing expectations. This remarkable 111% growth compared to the previous year's USD 2.6 million can be attributed to accelerated progress in the customer contract, leading to revenue shifting into the second quarter. New bookings in the quarter amounted to USD 28.0 million, contributing to a year-to-date total of USD 32.2 million. As of June 30, 2023, IonQ maintained a robust financial position with USD 509.2 million in cash, cash equivalents, and investments. However, the net loss for the quarter stood at USD 43.7 million, while the Adjusted EBITDA loss amounted to USD 19.4 million, excluding a non-cash loss of USD 15.5 million linked to changes in the fair value of IonQ's warrant liabilities.
  • Strategic Commercial Engagements: IonQ is embarking on a strategic partnership with QuantumBasel to establish a quantum data center in Europe. This center will host IonQ systems capable of achieving up to #AQ 35 and #AQ 64. The collaboration with South Korea's Ministry of Science and ICT positions IonQ as a vital educational resource for Korean students, researchers, and industry professionals. A meeting with South Korea's President, Yoon Suk Yeol, emphasized the potential of IonQ's quantum computing to contribute to the nation's economic growth. Additionally, IonQ has expanded access to IonQ Forte, making the power of #AQ 29 available to developers worldwide, with recent benchmarks validating its performance.
  • Technical Advancements: IonQ's collaboration with Oak Ridge National Laboratory has resulted in a significant advancement in quantum chemistry algorithms. IonQ aims to develop an #AQ 64 system by the end of 2025 with the goal of achieving quantum advantage for specific use cases. This will render classical computers inadequate for simulating IonQ systems. Detailed technical information and upcoming product specifications will be unveiled at the Quantum World Congress on September 27th.
  • 2023 Financial Projections: IonQ has updated its revenue projection for 2023, now ranging between USD 18.9 million and USD 19.3 million. Anticipated Q3 2023 revenue is expected to fall between USD 4.8 million and USD 5.2 million. The company also aims to increase its bookings 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. To meet the heightened demand, IonQ intends to sell several systems tailored to different customer requirements over the next 18 months. These projections are based on a probability-weighted average of its pipeline, accounting for potential sales within the 2023 timeframe.

Technical Observation (on the daily chart)

The stock is presently hovering near an important resistance range of USD 15.00-USD 17.00, a level where price has encountered resistance in the past. An anticipated course of action from this juncture involves a potential correction, guiding it towards the support range of USD 12.00-USD 14.00, prior to a potential resumption of an upward trajectory. The RSI (Relative Strength Index) with a 14-period setting presently stands at 52.27, suggesting a scenario of continued consolidation or a short-term correction. Furthermore, it is worth noting that the current price resides above the 21-period SMA (Simple Moving Average), serving as a dynamic short-term support level. As the current price aligns closely with the 50-period SMA, a rejection from this point could prompt a corrective movement in the stock back to the USD 12-USD 14 range, while an upside breakout could propel the stock to levels of USD 18-USD 20.

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 15.86 as of October 12, 2023, at 08:45 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 October 12, 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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