Why IonQ, Inc. (IONQ) Went Down on Thursday

We recently compiled a list of the 10 Stocks Drop by Double Digits Mostly Due to Disappointing Earnings. In this article, we are going to take a look at where IonQ, Inc. (NYSE:IONQ) stands against the other stocks.

Wall Street’s main indices suffered a bloodbath on Thursday as overall investor sentiment was weighed down by President Donald Trump’s series of tariffs on goods from other countries.

The Dow Jones dropped by 0.45 percent, while the S&P declined 1.59 percent. Nasdaq, on the other hand, lost 2.78 percent.

On Thursday, Trump threatened to slap EU products with a 25-percent tax, following his announcement on Wednesday of another month of delay for the imposition of taxes on goods from Mexico and Canada.

Ten companies also mirrored wider market pessimism, posting double-digit declines, albeit the drop was predominantly due to dismal earnings performance last year.

To come up with Thursday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A quantum computer on a countertop in an engineering laboratory with a technician at work.

IonQ, Inc. (NYSE:IONQ)

IonQ, Inc. (NYSE:IONQ) plummeted by 16.77 percent on Thursday to end at $24.91 apiece as investors sold off on disappointing earnings performance last year.

In its latest earnings release, IonQ, Inc. (NYSE:IONQ) widened its net loss in the fourth quarter of 2024 by 382 percent to $202 million from $41.9 million in the same period a year earlier, despite revenues nearly doubling to $11.7 million from $6.1 million.

In full-year 2024, net loss more than doubled to $331.6 million from $158 million in 2023, despite revenues expanding by 95 percent to $43 million from $22 million year-on-year.

The dismal performance overshadowed announcements that it acquired a controlling stake in Geneva-based ID Quantique. Alongside the transaction, IonQ, Inc. (NYSE:IONQ). expects to enter into a strategic partnership focused on quantum with SK Telecom, the largest wireless telecommunications operator in South Korea.

On the same day, IonQ, Inc. (NYSE:IONQ) also announced the entry of its new CEO, Niccolo de Masi, replacing Peter Chapman, who is set to assume the executive chair position.

Overall IONQ ranks 3rd on our list of Thursday’s worst performers. While we acknowledge the potential of IONQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as IONQ but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.