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Why We're Avoiding IonQ Stock
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Күн бұрын#IonQ stock is the first pure-play #quantumcomputing stock and a very promising one at that. There aren’t many alternatives for pure-play quantum computing stocks, certainly none with the credentials that $IONQ brings to the table. Sure, there are tech giants dabbling in quantum computing - Google, Microsoft, Amazon - but they’d hardly be considered quantum computing stocks. IonQ may be the only quantum computing stock there is right now, but that doesn’t mean you should rush to invest in it. As investors, we don’t care if you’re using classical computing, cloud computing, or quantum computing. We just want to see progress made in the form of revenue growth (preferably with a SaaS business model) which shows that you’ve built hardware or software applications that other companies are willing to pay for - qubits or not. We don’t invest in pre-revenue companies, and the same holds true for the quantum computing space, no matter how exciting of a future we’re promised. We’ll be waiting until after IonQ completes their SPAC and some proper regulatory filings are made, then we’ll take another look at the company. Listen to our analysis to find out about IONQ stock, the company that developed the world’s most powerful quantum computer.
0:00 Intro
3:58 Quantum computing progress
6:31 IonQ revenue projection issues
7:31 IonQ’s actual and expected revenues
11:26 IonQ’s valuation
14:06 First isn’t always best
14:50 Competition: big players & newcomers
16:04 The balanced view
17:44 Quantum advantage: software or hardware
RESEARCH PIECES USED IN THIS VIDEO:
1. IonQ - A Publicly Traded Quantum Computing Stock
www.nanalyze.c...
2. Quantum Computing Stocks Are Having a Moment www.nanalyze.c...
3. Check out our interview with Landon Downs from 1Qbit here: www.nanalyze.c...
ABOUT US:
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DISCLAIMER: Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, along with independently researching and verifying, any information contained within our KZfaq videos or on our website, whether for the purpose of making an investment or otherwise.
@joepiv 2 жыл бұрын
COMMENTS POLICY: People are expected to behave in a manner that enriches the conversation. Criticisms are strongly encouraged as long as they are presented in a civil manner. Any rude obnoxious attack-the-messenger rubbish will be given one warning. After that, comments will be removed and the individual who made them will be blocked.
@ofamily8180 2 жыл бұрын
Sir, IONQ is my sacred cow. I went all in on this stonk and my hopes, dreams and futures are tied to it. I am massively offended by this video.
@Nanalyze 2 жыл бұрын
Underrated comment this one.
@Third_eye559 2 жыл бұрын
IonQ is a super long play, I’m aiming to get 1000 shares, there will be a lot of volatility along the way but the advantages of quantum computers for industry cannot be ignored, the money men will see how much their profit margins could grow by implementing quantum computation into their companies day to day runnings
@Nanalyze 2 жыл бұрын
You seem to imply that $IONQ is the only quantum computing company out there. They're not. Dozens of companies are working on quantum computing including some of the world's biggest technology companies that have been throwing billions on dollars at quantum computing. Because quantum computing is so complex that even the experts can't describe it, investors should look to the one indicator of success that matters - revenues. Thank you for the comment!
@Third_eye559 2 жыл бұрын
@@Nanalyze it’s miles ahead of the competition as proven. The talent they are employing is world class, Google’s head of quantum computing engineering joined them……also I have money in ionq so I have to stay positive 😂😂
@Nanalyze 2 жыл бұрын
No, it is not "miles ahead of the competition." That's a vague statement that needs to be quantified. We have no idea what the other several dozen quantum computing companies are up to that aren't public. World class talent is great but it all comes down to execution. You are right you need to stay positive because you have money in the stock :) but don't cheerlead man! Just pay attention to revenues (not related parties). That's your main indicator of progress. Once they have those, we may be joining you as shareholders. If it means joining at a higher price, we're totally cool with that.
@kiwan5425 2 жыл бұрын
@@Nanalyze Seems like you don't follow closely. IonQ is leading.
@joepiv 2 жыл бұрын
@@kiwan5425 Take the cheerleading somewhere else or get blocked.
@kaimasters3277 2 жыл бұрын
Thank you this was very insightful as I was looking at the stock because of all the quantum computing hype.
@Nanalyze 2 жыл бұрын
Thank you very much for that feedback. We'd love to have some skin in the game once a leader emerges. Because everything is so technically complex and opaque, we're using revenues to measure progress for any company. Here's to hoping IonQ makes it happen.
@mikehill1613 2 жыл бұрын
I’ve been listening to you for a few months now, enough to have learned a bit of your philosophy and understand your common sense adherence to underlying financial principles. With the tech market seemingly a whimsical crap shoot particularly if one is relying on a company’s potential, I for one feel calm knowing my money is vested in real companies with valid historical revenue. Your insight into this exciting arena of disruptive technologies is very much appreciated. Thanks so much for all your hard investigative work. I thank you and my heirs should thank you.:)
@Nanalyze 2 жыл бұрын
You are very welcome Mike. As a Nanalyze Founding member, your contributions have helped build what we have today. Positive feedback assures that we continue down the path we have been. As risk-averse investors, we try to preserve capital, not just increase it. It goes without say that every disruptive tech company has a bull thesis, but we always focus on the bear thesis by looking for red flags. Thanks again for your support.
@rookandpawn Жыл бұрын
I learned so much listening to this. Thank you
@joepiv Жыл бұрын
That's what we always like to hear - people learning how to become better investors!
@vaneh6982 2 жыл бұрын
Already provided a huge gain from 9.51 low to 16.92 high this month during these market conditions
@Nanalyze 2 жыл бұрын
That may be Anvar. We at Nanalyze look at long-term potential though, we're not trying to trade short-term and time the market.
@Nanalyze 2 жыл бұрын
Also remember those are paper gains. You only capture alpha when you exit a position.
@edward3342 Жыл бұрын
I bought 1300 shares @ $4.51
@joepiv 2 жыл бұрын
Here's the link at the end of the video: www.nanalyze.com/2019/04/quantum-computing-software/ We're still working the kinks out of the video editing robot we hired on Fiver.
@nx3617 2 жыл бұрын
Monroe and Kim have stated they can scale their technology when others will need breakthroughs in physics to make meaningful progress. There's value in IonQ's talent, if you watch them discussing QC's with other experts you can tell they are holding all the cards. Others are hoping they can catch up so their research hasn't gone to waste. There's also value in the hype. They have the lead for the most exciting and promising technology of the 21st Century, and it's a stock solely dedicated to building on that lead. I'd compare IonQ to Tesla, talent & hype. If they don't execute according to the plan they have laid out then it's time to ditch.
@hiksh1256 2 жыл бұрын
I totally agree with you.
@Nanalyze 2 жыл бұрын
As the presentation discusses, we don't care about science by press release. We listen to what companies tell the SEC. The company is presently trying to scale their technology like everyone else. They're not holding back some big breakthrough for when it's time. No, others are not hoping they can "catch up." We're calling bullshit on these unsubstantiated claims you're making. No, there is no value in hype. At all. Revenue is the only true indicator of product-market fit. Period. Every company developing a quantum computer will say they're in "the lead," whatever that means. And there you go with the "IonQ is the next Tesla" rubbish. Try to present facts that support your argument. And lose the cheerleading because it doesn't help anyone.
@GovenorJerryBrown 2 жыл бұрын
@@Nanalyze I agree with NX
@Nanalyze 2 жыл бұрын
Same response applies. See above.
@GovenorJerryBrown 2 жыл бұрын
@@Nanalyze Let's see what your portfolio returns are then maybe we'll listen.
@Cyclops0000 2 жыл бұрын
I'd love to invest in QC stocks but I've got no clue which company will come to dominate. It's the kind of tech that will have a clear winner and it could change very quickly. Even if you pick a company that seems to be getting mass adoption and you've seen interviews with industry leaders talking up the tech, it's still entirely possible that a rival could make a breakthrough overnight. Given this I'd much prefer to invest in the usual big tech names like Google, Microsoft and Amazon because I'm sure they're all working on their own tech that will have a good shot at dominating but if not they've got the cash to buy out smaller successful QC companies and of course you get the many other great segments of their business as well.
@Nanalyze 2 жыл бұрын
There could be multiple winners. The beneficiaries could also stay quiet about their progress - as some experts have suggested might happen - so we won't know who is making progress. That's why for any pure-play stock, revenues are the best proxy for progress. Big tech players do seem likely beneficiaries. Thank you for sharing your thoughts!
@SavvyMoneyShow 2 жыл бұрын
I always like a bear view of any stock I hold so I am not suprised
@Nanalyze 2 жыл бұрын
Good job. Every investor should adopt this attitude.
@marcesivel9909 2 жыл бұрын
Why do you use the price to sales ratio here? Why can we apply the Gordon Growth Model here?
@joepiv 2 жыл бұрын
Growth companies have revenues, not income. Revenues are most important which is why we use our own simple valuation ratio (www.nanalyze.com/2021/06/simple-valuation-ratio-tech-stocks/). Using a dividend discount model on a growth company makes no sense at all.
@shawncarter2032 2 жыл бұрын
I enjoyed this video and hope you do more. I have invested in IonQ because of the academic pedigree and SPAC hype, but I also have invested in Rigetti (SNII), and certainly like the new Honeywell merger. I should be more choosey and use revenue, but there are not many options for retail investors right now. I really liked your distinction between software and hardware. Personally, I think quantum will eventually branch into large-scale commercial applications, QaaS solutions, and (hopefully) small scale computing options for individuals. I look forward to more analysis from your group as more public options become available and this sector becomes more commercially important.
@Nanalyze 2 жыл бұрын
Thank you very much for that informative comment Shawn and we're glad you enjoyed the video. Sure, one way to play this is buy betting on all available QC stocks - of which there aren't many right now (and there are definitely a few to avoid like Archer Materials and QUBT). Someone commented that IONQ is building software, and there's certainly a software component to their QCaaS platform. We were more referring to what 1QBit has - a hardware agnostic software platform, or what Microsoft accomplished with their algo (the example in the video). We're also really keen to learn more about the Honeywell merger. We'll definitely publish more research on this space as time goes on so stay tuned.
@Wildboy789789 2 жыл бұрын
I have alot of ionq, currently to my detriment if price is to be believed lol... but let me tell you why, on a very basic lvl ionq makes the only vaccume chamber "heatless" quantum chip... while everyone is making quantum computers the size of mattresses, ionqs chip is the size of a thumb, these chips can send more complex signals and are heatless... also, while revenue is a concern for any start up, ionq i believe has 900mil in cash, ive been in scaryer stocks
@joepiv 2 жыл бұрын
Revenue is a concern for startups, you're right, but not for publicly traded stocks that should already be showing traction. SPACs made it easy for any startup to IPO, and that they did. Quantum computing is so complex that even the experts can't explain it. When that's the case, the average retail investor doesn't stand a chance. Agree there's a lot of potential for QC - and we did like aspects of $IONQ - but we're waiting for meaningful revenues.
@johnhoy7572 Жыл бұрын
This aged very well. 70% down since posting it
@Nanalyze Жыл бұрын
Cheers for the update John. All quantum computing stocks should be avoided until they start to show meaningful revenues (none of this related party stuff). The SPAC mechanism allowed many of these companies to raise capital easily - good for them, not so good for retail investors.
@ajpproductions3354 3 ай бұрын
is still IonQ a bad stock to buy for you ? Seems to show increasing revenue
@Nanalyze 3 ай бұрын
Our last piece on quantum computing can be found here: kzfaq.info/get/bejne/oJmYdqxjv5eofKs.html
@johncarter6357 2 жыл бұрын
Awesome Review dude, Sadly, all the retailer care about is what is the next TESLA, AMAZON, Google lol..they don't care about reason or logic..They jump in for the pump and when they get destroyed, they blame other!! lol.
@Nanalyze 2 жыл бұрын
Thanks for the feedback man. And mainstream financial pundits do nothing to help the situation.
@sahasra9 3 ай бұрын
Worthwhile to give it another shot?
@Nanalyze 3 ай бұрын
Not sure what you mean. The stock is extremely overpriced.
@sahasra9 3 ай бұрын
@@Nanalyze I meant is it worthwhile your time to analyze this again.
@Nanalyze 3 ай бұрын
@@sahasra9 Here you go: kzfaq.info/get/bejne/oJmYdqxjv5eofKs.html
@sahasra9 3 ай бұрын
@@Nanalyze Thanks. They are reporting this week. Will keep an eye on this.
@dastanaitzhanov2544 Жыл бұрын
It’s actually common to treat bookings as revenues in tech.
@Nanalyze Жыл бұрын
No, we've had this conversation a dozen times already. Accounting clearly distinguishes between bookings and revenues for a reason, and so do we.
@premosounds 9 ай бұрын
@Nanalyze it's considered accounts receivable.
@TheMrSlyxx 2 жыл бұрын
Great stuff. Please do one on Lilium and Joby. EVTOL is getting a lot of buzz.
@joepiv 2 жыл бұрын
That's not a bad idea. Threw it over the wall to the research team. Thank you for the feedback.
@TheMrSlyxx 2 жыл бұрын
@@joepiv Lilium has an exceptionally engineered EVTOL jet. There is an order from Net Jet for 150 Lilium jets. That's the latest thing I've heard. Overall, the air taxi thing seems like it could be a winner.
@joepiv 2 жыл бұрын
@@TheMrSlyxx Here's a piece we did on them. We may look to do an update on the broader VTOL thesis: www.nanalyze.com/2021/08/lilium-stock-electric-jet-aviation/
@Damian-lz7hb 2 жыл бұрын
What is the difference between IONQ and Arqit Quantum? Which one has better technology?Looks like Arqit has more Revenue, both are Spacs
@joepiv 2 жыл бұрын
We've thoroughly reviewed both companies: www.nanalyze.com/2021/09/arqit-quantum-stock/ You're comparing apples to oranges. We're avoiding both.
@SavvyMoneyShow 2 жыл бұрын
I bought at 7 despac and sold at 20 then 30 I now hold free shares as a long term spec paid for I was wondering with drop wether inshould keep with free shares or add my initial investment back in
@Nanalyze 2 жыл бұрын
Playing with the house's money on a speculative investment is always a good thing. Capital preservation is as important as capital appreciation.
@omarmunir3596 Жыл бұрын
Could you make an update video about IONQ?
@Nanalyze Жыл бұрын
We did a recent update on quantum computing stocks here: kzfaq.info/get/bejne/asClmMl4tdK4d6M.html
@kiwan5425 2 жыл бұрын
Bookings and prepayments are spreads over months.
@Nanalyze 2 жыл бұрын
Yes. And?
@xingli1069 2 жыл бұрын
By your valuation metric most biotech stocks are worth 1c? Confused.
@Nanalyze 2 жыл бұрын
You'll need to explain that comment a bit more, but maybe this will help. We don't buy stocks unless they have meaningful revenues. It's one of the many objective rules in our tech investing methodology that helps reduce risk. Not everyone wants to reduce risk, and that's fine. This decade-long bull has to stop running at some time, and we don't want to be looking for a chair when the music stops.
@mikehill1613 2 жыл бұрын
Did I miss your patreon link?
@Nanalyze 2 жыл бұрын
Thank you for the offer of support Mike! At the moment, our business is funded through subscriptions such as the annual one you purchased to become a Founding member of Nanalyze. As our subscribership grows, we have more resources to produce more content. The idea behind our KZfaq channel is that we can provide useful information to attract new readers while also providing insights to our subscribers. Note that we also offer courses that are ONLY for Nanalyze Premium subscribers. The next one is coming up soon and will cover Quantigence, our dividend growth investing strategy. Thank you for your support and encouragement!
@jfamo3552 Жыл бұрын
Well done here
@Nanalyze Жыл бұрын
Cheers for the positive feedback!
@jfamo3552 Жыл бұрын
Even a primate like me knows that software will rule the roost. It did for conventional computers why wouldn't it for quantum computers? I guess it could go the other way but I just don't see it. And again this is well done my friend
@jfamo3552 Жыл бұрын
@@Nanalyze it's way too early and way too murky. I'm an amateur investor. This business is so murky you might as well be involved in Fusion reactors. It's even more complex really. Yes I'm interested. Yes I own a few shares. But I'm not committed to anything for the obvious.
@Nanalyze Жыл бұрын
Software eats the world as they say. Check out this piece we did on quantum computing software: www.nanalyze.com/2019/04/quantum-computing-software/
@Nanalyze Жыл бұрын
It is early and indeed murky! When the experts can't even tell if quantum computing works, we need to fall back on old reliable - the existence of meaningful revenues.
@MusicLuv80 Жыл бұрын
How about now? The stock price is around 5 dollars.
@Nanalyze Жыл бұрын
The point of contention isn't the stock price, it's the fact this firm doesn't have meaningful revenues. It could trade at two cents a share and we wouldn't invest until it has meaningful revenues.
@MusicLuv80 Жыл бұрын
@@Nanalyze That is a good point. Thanks for your help.
@Nanalyze Жыл бұрын
You are welcome! Here is our methodology in case you're interested (we're quite risk-averse): www.nanalyze.com/nanalyze-premium-articles/
@vaneh6982 2 жыл бұрын
i already took 100% on Ionq and Im gonna do it again this year..then we can have talk again why it should be avoided, cool? take note of date this msg was sent
@Nanalyze 2 жыл бұрын
Thanks for adding no value to the conversation. Want to try again or nah?
@somenormie 2 жыл бұрын
@@Nanalyze you should probably reply to people more professionally tbh
@Nanalyze 2 жыл бұрын
@Ransom Bailey You should probably go start your own KZfaq channel if you want to give people marching orders and expect them to be followed. One warning and you're getting the boot. Would you like to try again and join us in a constructive conversation that debates the merits of IonQ?
@topticktom 2 жыл бұрын
still avoiding?
@Nanalyze 2 жыл бұрын
Yes, still avoiding.
@daniellugo4272 2 жыл бұрын
Why We're Avoiding IonQ Stock -> Answer: To scare people and buy cheap haha
@Nanalyze 2 жыл бұрын
Ah, the old worn-out "you're scaring to buy it cheaper" accusation. So predictable. Almost as bad as the "you're short" accusations. We don't short stocks. We don't "scare people" to buy stocks cheaper. Did you actually watch the video? Or did you just pull that accusation out of your ass after reading the title? Be honest.
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