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Why Is IonQ Stock Up Recently?

Let’s break down exactly what IonQ said to encourage investors and answer the question, “is IonQ stock a good buy”?
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IonQ (NYSE: IONQ) is a leading quantum computing company. Over the past several months, its stock was down nearly 90% from its all-time high. But, more recently, IonQ stock surged 18% following a better-than-expected earnings report. Let’s break down exactly what IonQ said to encourage investors and answer the question, “is IonQ stock a good buy”?

Why is IonQ Stock Dropping?

IonQ stock is hardly the only stock that’s down significantly. There has been a massive sell-off recently in high-growth tech stocks and many are down 80% or more. Even large names like Amazon and Meta Platforms are down 30% or more year-to-date (YTD). This is mainly the result of several large macroeconomic factors.

There are so many factors at play that it’s hard to summarize them. First, the world is still suffering from supply chain shortages caused by COVID-19. This is limiting the supply of products, which hurts corporate profits. Due to this, as well as the excessive economic stimulus packages, the U.S. is experiencing record-high inflation rates. To combat high inflation, the Federal Reserve has been slowly raising interest rates. It plans to continue raising rates. This encourages investors to buy value stocks, which are safer when compared to high-growth companies.

All of this has contributed to IonQ’s declining stock price. Although, it doesn’t help that IonQ reported pretty abysmal earnings in Q4 2021. It reported a net loss of $74.08 million with revenue of just $1.65. Not what investors want to see. Luckily, it looks like that is starting to change.

IonQ Q1 Earnings Report

IonQ reported a Q1 EPS of -.09, missing analyst expectations by 50%. It also reported Q1 revenue of $1.95 million, missing expectations by .12%.

While IonQ missed analyst expectations on these marks, the rest of its report was fairly positive. Let’s take a look…

  • Q1 revenue of $2 million.
  • Q1 bookings of $4.2 million.
  • Cash, cash equivalents and investments were $586.4 million as of March 31, 2022.
  • Net loss of $4.2 million.

Peter Chapman, President, and CEO of IonQ stated that these results exceeded the company’s expectations. For reference, revenue of $2 million is already about as much as IonQ did in all of 2021. This means that the company is already looking at yearly growth in terms of revenue.

Additionally, for a pioneering quantum computing company like IonQ stock, investors don’t care as much about financials. They also want to see that IonQ is making good progress on its product. In this regard, IonQ had more good news for investors.

Mainly, the IonQ Aria will soon be available on Microsoft Azure’s Quantum Cloud. This will bring IonQ Aria out of private beta and give full access to the public. This is a particularly notable achievement when you consider that Microsoft’s Azure platform is one of the largest quantum cloud computing platforms in the world.

On top of that, IonQ ​​announced a new research project that could help improve the charging, discharging, durability, capacity, and safety of electric vehicle batteries. The push for U.S. energy independence will likely be a major initiative over the coming years. Now, IonQ will be in a great position to profit from this movement directly.

Addressing Concerns

In addition to its own reports, IonQ stock also recently addressed a report by the short-selling investment firm Scorpion Capital. A short seller is any investor that stands to make a profit from a decline in stock price. In this case, Scorpion Capital bet that IonQ’s stock price would decrease.

Scorpion Capital had previously issued a report on IonQ, questioning its business and encouraging investors to sell. IonQ fired back with its own statement correcting inaccuracies in Scorpion Capital’s report.

Dr. Craig Barratt, Chair of the IonQ Board of Directors stated, “I have the utmost confidence in the IonQ team and their integrity, commitment to ongoing research and patented inventions and accomplishments that benefit IonQ’s customers and partners.

This confidence could be another reason that investors are piling back into IonQ stock which caused it to bump nearly 18% in one day.

Should I Buy IonQ Stock?

As always, this is a personal question. The answer should ultimately be based on your own due diligence and financial goals. With that said, IonQ, and quantum computing as a whole, are definitely exciting industries with lots of potential. I place quantum computing alongside industries like automation, artificial intelligence and self-driving cars.

It feels like we’ve been hearing about these industries for years. However, we are finally reaching a point where they are starting to actually enter the market. The IonQ Aria being made available on Microsoft Azure is a huge example to this. It will be incredibly exciting to see how the industry progresses in the coming years.

With that said, the current macroeconomic environment is still a mess. By this point, many analysts expect that the U.S. could enter a severe recession in the coming months. If this happens, you probably won’t want to have your money invested in a high-growth company like IonQ stock. That is unless you have a long-time horizon and are prepared to wait out a few bumpy months.

I hope you’ve found this article valuable in learning why IonQ stock is up recently. Please remember that I’m not a financial advisor and am just offering my own research and commentary. As usual, please base all investment decisions on your own due diligence.

The post Why Is IonQ Stock Up Recently? appeared first on Investment U.

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Economics

Expert on Bath & Body Works: ‘an easy double the next three years’

Bath & Body Works Inc (NYSE: BBWI) might have been painful for the shareholders this year, but the road ahead will likely be a rewarding one, says…

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Bath & Body Works Inc (NYSE: BBWI) might have been painful for the shareholders this year, but the road ahead will likely be a rewarding one, says the Senior Vice President and Portfolio Manager at Westwood Group.

BBWI separated from Victoria’s Secret

The retail chain separated from Victoria’s Secret in 2021, which, as per Lauren Hill, clears the way for a 100% increase in the stock price in the coming years. On CNBC’s “Closing Bell: Overtime”, she said:

[Bath & Body Works] has really strong pricing power. They have 85% of their supply chain in the United States and with the Victoria’s Secret brand now gone, I think it’s a wonderful buy; an easy double the next three years.

Last month, the Columbus-headquartered company reported results for its fiscal first quarter that topped Wall Street expectations.

Bath & Body Works is a reopening play

The stock currently trades at a PE multiple of 6.64. Hill is convinced Bath & Body works is a reopening name and will perform so much better as the world continues to pull out of the pandemic. She noted:

Customers have missed buying their scented products in store and as their social occasion calendars fill up, they are getting back out there and buying more gifts, including Bath & Body Works products.

Hill also dubbed BBWI a great pick amidst the ongoing inflationary pressures because of its reasonably priced products. Shares are down more than 50% versus the start of 2022.

The post Expert on Bath & Body Works: ‘an easy double the next three years’ appeared first on Invezz.

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Economics

Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Authored by Naveen Anthrapully via The Epoch Times,

A…

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Majority Of C-Suite Execs Thinking Of Quitting, 40% Overwhelmed At Work: Deloitte Survey

Authored by Naveen Anthrapully via The Epoch Times,

A majority of C-suite executives are considering leaving their jobs, according to a Deloitte survey of 2,100 employees and C-level executives from the United States, Canada, the UK, and Australia.

Almost 70 percent of executives admitted that they are seriously thinking of quitting their jobs for a better opportunity that supports their well-being, according to the survey report published on June 22. Over three-quarters of executives said that the COVID-19 pandemic had negatively affected their well-being.

Roughly one in three employees and C-suite executives admitted to constantly struggling with poor mental health and fatigue. While 41 percent of executives “always” or “often” felt stressed, 40 percent were overwhelmed, 36 percent were exhausted, 30 percent felt lonely, and 26 percent were depressed.

“Most employees (83 percent) and executives (74 percent) say they’re facing obstacles when it comes to achieving their well-being goals—and these are largely tied to their job,” the report says. “In fact, the top two hurdles that people cited were a heavy workload or stressful job (30 percent), and not having enough time because of long work hours (27 percent).”

While 70 percent of C-suite execs admitted to considering quitting, this number was at only 57 percent among other employees. The report speculated that a reason for such a wide gap might be the fact that top-level executives are often in a “stronger financial position,” due to which they can afford to seek new career opportunities.

Interestingly, while only 56 percent of employees think their company executives care about their well-being, a much higher 91 percent of C-suite administrators were of the opinion that their employees believe their leaders took care of them. The report called this a “notable gap.”

Resignation Rates

The Deloitte report comes amid a debate about resignation rates in the U.S. workforce. Over 4.4 million Americans quit their jobs in April, with job openings hitting 11.9 million, according to the U.S. Department of Labor. In the period from January 2021 to February 2022, almost 57 million Americans left their jobs.

Though some are terming it the “Great Resignation,” giving it a negative connotation, the implication is not entirely true since most of those who quit jobs did so for other opportunities. In the same 14 months, almost 89 million people were hired. There are almost two jobs open for every unemployed person in the United States, according to MarketWatch.

In an Economic Letter from the Federal Reserve Bank of San Francisco published in April, economics professor Bart Hobijn points out that high waves of resignations were common during rapid economic recoveries in the postwar period prior to 2000.

“The quits waves in manufacturing in 1948, 1951, 1953, 1966, 1969, and 1973 are of the same order of magnitude as the current wave,” he wrote. “All of these waves coincide with periods when payroll employment grew very fast, both in the manufacturing sector and the total nonfarm sector.”

Tyler Durden Sat, 06/25/2022 - 20:30

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Spread & Containment

Optimism Slowly Returns To The Tourism Sector

Optimism Slowly Returns To The Tourism Sector

Coming off the worst year in tourism history, 2021 wasn’t much of an improvement, as travel…

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Optimism Slowly Returns To The Tourism Sector

Coming off the worst year in tourism history, 2021 wasn't much of an improvement, as travel remained subdued in the face of the persistent threat posed by Covid-19.

According to the United Nations World Tourism Organization (UNWTO), export revenues from tourism (including passenger transport receipts) remained more than $1 trillion below pre-pandemic levels in 2021, marking the second trillion-dollar loss for the tourism industry in as many years.

As Statista's Felix Richter details below, while the brief rebound in the summer months of 2020 had fueled hopes of a quick recovery for the tourism sector, those hopes were dashed with each subsequent wave of the pandemic.

And despite a record-breaking global vaccine rollout, travel experts struggled to stay optimistic in 2021, as governments kept many restrictions in place in their effort to curb the spread of new, potentially more dangerous variants of the coronavirus.

Halfway through 2022, optimism has returned to the industry, however, as travel demand is ticking up in many regions.

You will find more infographics at Statista

According to UNWTO's latest Tourism Barometer, industry experts are now considerably more confident than they were at the beginning of the year, with 48 percent of expert panel participants expecting a full recovery of the tourism sector in 2023, up from just 32 percent in January. 44 percent of surveyed industry insiders still think it'll take until 2024 or longer for tourism to return to pre-pandemic levels, another notable improvement from 64 percent in January.

Tyler Durden Sat, 06/25/2022 - 21:00

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