IonQ stock price: sky is the limit for this quantum computing company

IonQ (NYSE: IONQ) stock price drifted upwards on Friday after the quantum computing company published encouraging results and boosted its outlook. The shares were trading at $9.50, ~204% above the lowest level this year. This makes it one of the best-performing technology stocks.

Quantum computing demand rises

Quantum computing is a fast-growing industry in the tech sector that seeks to solve some of the top challenges that exist in modern computing. The tech combines numerous fields like computer science and physics to process information at a faster pace than modern computers. 

Quantum computing will have an important role to play in the age of artificial intelligence, which explains why IonQ stock price has gone parabolic this year. The company published strong results and doubled its bookings numbers. 

IonQ revenues came in at over $4.29 million in the first quarter, a number that was better than what analysts were expecting. While the $4.29 million figure is a small one, it is a good one since the company started shipping its products recently. 

The company hope that its bookings will be between $38 million and $42 million this year. Its EBITDA was a loss of $15.9 million, higher than the $10.3 million it made in the previous year. It expects that its EBITDA for the year will be a loss of $80.5 million.

IonQ believes that its revenue for the second quarter will be between $18.8 million and $19.2 million, meaning that the company’s growth is acceleratting. 

Most importantly, IonQ has a strong balance sheet. It has over $525 million in cash and investments. This means that dilution risks are minimal. Talking about its cash hoard, the company’s CFO said:

“We continue to believe that this cash position, which we believe is the strongest of any quantum pure player, gives us sufficient cash reserves to get to profitability.”

IonQ stock price forecast

IonQ chart by TradingView

The daily chart shows that the IonQ share price has been in a strong bullish trend in the past few months. In this period, it has constantly remained above the important resistance point at $8.56, the highest point on August 17th last year.

IonQ share price has also retested this level, which is a bullish sign. It also remains above the 25-day and 50-day moving averages. Therefore, the outlook for the stock is still bullish, with the next level to watch being at the YTD high of $11.63.