Why IonQ Stock Keeps Going Down

By Rich Smith – Feb 5, 2026 at 1:16PM ESTKey PointsWolfpack Research published a "short" report on IonQ yesterday.Wolfpack believes IonQ has lost its biggest defense contracts in Congress.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: IONQIonQMarket Cap$13BToday's Changeangle-down(-11.26%) $3.98Current Price$31.36Price as of February 5, 2026 at 2:00 PM ETIonQ lost $1.5 billion last year. Now, even its ability to grow revenues looks questionable.IonQ (IONQ 11.26%) stock is in a tailspin. Down six trading sessions in a row, shares of the biggest name in quantum computing (IonQ is valued at $14 billion, more than Rigetti (RGTI 10.79%) and D-Wave (QBTS 11.24%) combined) added 8.8% to their losses Thursday. That's the tally as of 12:45 p.m. ET -- and IonQ stock is still going down. You can blame Wolfpack Research for that. Image source: Getty Images. Wolfpack shorts IonQ Wolfpack is a short seller, so it's perhaps unsurprising to learn that yesterday it published a report urging investors to sell IonQ stock short. Why? IonQ exploded in popularity on the back of massive revenue growth. Five years ago, IonQ did barely $2 million a year in sales, but from 2022 to 2024, sales soared to $11 million, $22 million, then $43 million! (At last report, sales were on course to double again in 2025.) But Wolfpack explains in its 33-page short report that "up to 86%" of IonQ's 2022-2024 revenue came from Pentagon contracts that Congress is no longer funding; its largest contract was "completely" stripped from the fiscal 2026 defense budget. This creates "a $54.6 million black hole in [IonQ's] expected quantum computing revenues," warns Wolfpack. The analyst says revenues have not taken an obvious hit yet, only because IonQ has been replacing the canceled government contracts with revenue from "subpar non-quantum computing companies" that IonQ has been acquiring. ExpandNYSE: IONQIonQToday's Change(-11.26%) $-3.98Current Price$31.36Key Data PointsMarket Cap$13BDay's Range$31.07 - $34.3752wk Range$17.88 - $84.64Volume1.1MAvg Vol21MGross Margin-747.41% Is IonQ stock a sell? IonQ lost $1.5 billion in 2025 and burned through $259 million in cash, according to data from S&P Global Market Intelligence. Analysts see losses continuing as far out as anyone's making estimates -- and now Wolfpack is questioning whether IonQ can even continue growing profitless revenues. The safest choice today is probably to sell.Read NextFeb 5, 2026 •By Geoffrey SeilerShould You Put $1,000 Into This High-Risk, High-Reward Stock Right Now?Feb 4, 2026 •By Anders BylundPrediction: 5 Quantum Computing Stocks That Will Be Worth More Than IonQ 5 Years From NowFeb 3, 2026 •By Keithen DruryIs IonQ the Top Quantum Computing Stock to Buy Right Now?Feb 2, 2026 •By Will HealyBetter Artificial Intelligence Stock: IonQ vs. D-Wave QuantumFeb 2, 2026 •By John BromelsIs IonQ Stock a Buy Now?Jan 30, 2026 •By Geoffrey SeilerIs IonQ Stock a Buy After Its Latest Acquisition?About the AuthorRich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”TMFDittyX@RichSmithFoolStocks MentionedIonQNYSE: IONQ$31.36 (0.11%) $3.98D-Wave QuantumNYSE: QBTS$17.81 (0.11%) $2.30Rigetti ComputingNASDAQ: RGTI$15.34 (0.11%) $1.85*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.