IonQ: The Hype Is Not Worth Chasing

Louis Gerard3.46K FollowersFollow5ShareSavePlay(11min)CommentsSummaryIonQ demonstrates real revenue growth and industry-leading technology but trades at a $17B market cap with an extreme EV/Sales multiple.FY25 revenue reached $130MM (202% growth), but stock-based compensation and adjusted EBITDA losses far outpace revenue, raising sustainability concerns.Recent GAAP net income is driven by non-cash warrant liability gains from share price declines, not operational profitability.I assign a Sell rating, citing a bleak H2 outlook, lumpy non-recurring revenues, and an inability to outearn the cost base despite a strong balance sheet. adventtr/E+ via Getty Images Introduction Regular readers of mine know that I've been covering many names in the AI-infrastructure industry with a rather skeptical eye, with names such as CoreWeave, IREN, Nebius, etc. The pattern that I keep on seeing is a genuine realThis article was written byLouis Gerard3.46K FollowersFollowAs a detail-oriented investor with a strong foundation in finance and business writing, I focus on analyzing undervalued and disliked companies or industries that have strong fundamentals and good cash flows. I have a particular interest in sectors such as Oil&Gas and consumer goods. Basically, anything that has been unloved for unjustified reasons that could offer substantial returns. Energy Transfer is one of those companies that I came across when no one wanted to touch it and now I can't resolve myself to sell it. I will always focus more on long-term value investing but I can sometimes lose myself in possible deal arbitrage such as with Microsoft/ Activision Blizzard, Spirit Airlines/Jetblue (that one still hurts), and Nippon/U.S. Steel (perfect exit at $50.19). I tend to shun businesses that I can't understand either high-tech or certain consumer goods such as fashion (give me a Levi's jeans). I don't understand why anyone would invest in cryptocurrencies as well.

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