Why IonQ Stock Sank Today
Shares of quantum-computing company IonQ (NYSE: IONQ) sank on Tuesday after one of the company's co-founders left to pursue his own interests. As of 9:45 a.m. ET, IonQ stock was down 8%, but it had been down as much as 12% earlier in the session.
IonQ is losing a leader
Decades before co-founding IonQ in 2015, Dr. Chris Monroe was already a leading quantum-computing expert. In an official press release yesterday afternoon, the company said that Monroe was leaving to do what he used to: research and teach.
Investors shouldn't downplay the loss for IonQ too much. After all, there are a limited number of individuals with the technical know-how and expertise in the field of quantum computing. Losing Monroe means losing one of the very best.
That said, IonQ still has very capable individuals, including its other co-founder, Jungsang Kim. Kim has pushed breakthroughs in the field, and his research is often cited by academics.
Perhaps investors are fearful that Monroe is really leaving because of problems at IonQ. After all, why would he leave if the company is on the cusp of becoming one of the great growth stocks of our time?
However, I believe investors should refrain from making too many assumptions. Career paths are very personal. And it could be that Monroe simply finds more meaning in the academic side of quantum computing than in the business side of it.
What now for IonQ?
IonQ will report financial results for the third quarter of 2023 on Nov. 8. Management expects between $4.8 million and $5.2 million in Q3 revenue, which would be a step back from revenue of $5.5 million in the second quarter. Nevertheless, investors are still optimistic, given recent deals that include its $25.5 million deal with the U.S. Air Force, which could help it overachieve when it comes to its full-year guidance on bookings.
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Jon Quast has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
