What Happened?
Shares of quantum computing company IonQ (NYSE: IONQ) fell 8.1% in the afternoon session after a short-seller report from Wolfpack Research alleged the company lost critical funding for Pentagon contracts. The report claimed that these contracts accounted for up to 86% of IonQ's revenue from 2022 to 2024. Wolfpack Research stated that this created a "$54.6M black hole in its bookings" for 2025. The short-seller also suggested this situation led to the CEO's resignation and significant insider stock sales. According to the report, IonQ then acquired several non-quantum computing companies in an effort to compensate for the lost funding, which worsened the company's cash flow from operations.
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What Is The Market Telling Us
IonQ’s shares are extremely volatile and have had 87 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 8 days ago when the stock gained 6% on the news that it agreed to acquire semiconductor foundry SkyWater Technology (SKYT) for $1.8 billion. The cash-and-stock deal valued SkyWater at $35.00 per share, a 38% premium over its recent average trading price. Under the terms, SkyWater shareholders were set to receive $15.00 in cash and $20.00 in IonQ common stock for each share held. The move was intended to create a vertically integrated company focused on quantum computing. Adding to the positive news, IonQ also pre-announced that its full-year revenue results were expected to be at the high end or above its previously guided range of $106 million to $110 million. In a separate vote of confidence, analysts at Needham reiterated a "Buy" rating on the company's stock.
IonQ is down 24.7% since the beginning of the year, and at $35.21 per share, it is trading 57.1% below its 52-week high of $82.09 from October 2025. Investors who bought $1,000 worth of IonQ’s shares 5 years ago would now be looking at an investment worth $2,937.
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