Famed investor Jim Cramer has shared his view on IonQ Inc (NASDAQ: IONQ), and his verdict is clear: the quantum computing stock is “too speculative” for his taste.
During a recent segment of “Lightning Round”, where he responds to stock-related inquiries, the former hedge fund manager expressed concerns about IonQ’s financial health and valuation.
It’s too high, and it’s losing so much money, But it’s quantum … it’s too speculative for me.
IonQ shares have been on an absolute tear in recent weeks and are currently up 165% versus their year-to-date low in early March.
Profitability remains an overhang on IonQ stock
IonQ stock has been at the forefront of quantum computing innovation, boasting advancements in trapped-ion technology that could revolutionize computing power.
The company has secured partnerships with major tech firms and government agencies, positioning itself as a key player in the quantum computing race.
However, despite its technological promise, IonQ has struggled with profitability.
According to its recent financial updates, the Nasdaq listed firm remains in the red, burning through significant cash reserves to fund research and development.
Why else does Cramer recommend caution on IONQ shares
Cramer’s assessment aligns with broader concerns about speculative investments in emerging technologies.
Quantum computing, while promising, remains in its early stages, and companies like IonQ face challenges in turning groundbreaking research into sustainable revenue streams.
Investors should note, however, that the Mad Money host’s reluctance in endorsing IonQ stock is not necessarily an outright dismissal of quantum computing’s potential.
Instead, it highlights risks tied to investing in businesses that have yet to prove their profitability.
“Speculative” stocks often attract investors looking for high-risk, high-reward opportunities, but they also carry the danger of volatility and financial instability.
Why does IonQ Inc continue to attract capital then?
IonQ has a loyal investor base that believes in the long-term potential of quantum computing.
The company’s stock has seen significant fluctuations, reflecting both excitement about its technology and concerns about its financial health.
For investors willing to take a gamble on the future of computing, IonQ shares remain an intriguing prospect.
However, as Cramer’s comments suggest, it may not be the right fit for those seeking more stable and predictable returns.
As quantum computing continues to evolve, IonQ’s ability to navigate financial challenges and demonstrate commercial viability will be crucial in determining its success.
For now, the stock remains a speculative bet—one that Jim Cramer isn’t willing to take.
What’s the consensus view on IonQ stock in 2025?
Wall Street currently has a consensus “buy” rating on IonQ Inc.
However, the mean target of $40 on the quantum computing stock suggests analysts believe the recent rally has indeed gone a bit too far, given it translates to a more than 15% downside from current levels.
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