Why 77% Revenue Growth Is Meaningless for IonQ Stock
Investors tend to take note when they see a company with a 77% year-over-year revenue growth rate. When growth is so robust, investor interest and rising stock prices often follow, especially when it is innovation driving such gains.
Unfortunately, that is likely not the case with IonQ (NYSE: IONQ). The company is a leader in quantum computing, a technology that could drastically speed up processing times for certain types of highly complex problems. This would allow quantum computers to perform functions and solve problems that conventional computers can't accomplish in a useful time frame.
For investors, the issue here comes down to financials. Even though IonQ does not necessarily have to turn an immediate profit, the quantum computing stock is unlikely to make sustainable gains without a dramatic change in its fiscal condition.
Source Fool.com
