Morgan Stanley Reduces IonQ Stake to 4.7%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy IONQ?
Source: stocktwits
- Stake Reduction Impact: Morgan Stanley Investment Management disclosed a reduction of its stake in IonQ to 4.7%, down from approximately 7% reported in August, which has now fallen below the 5% reporting threshold, potentially raising concerns about IonQ's future performance in the market.
- Funding Loss Allegations: Wolfpack Research alleged that IonQ lost funding for key Pentagon contracts, which accounted for up to 86% of its revenue from 2022 to 2024, resulting in a $54.6 million shortfall in expected bookings for 2025, further intensifying market skepticism regarding its financial health.
- Insider Stock Sales Issues: The short-seller also highlighted that IonQ insiders sold or authorized the sale of approximately $396.6 million in stock recently, which could raise investor concerns about corporate governance and transparency, thereby affecting market trust.
- Market Sentiment Shift: Despite IonQ's shares sliding 7% on Thursday and a cumulative decline of over 12% in the past three trading days, the stock rebounded by over 1% in overnight trading, indicating a divergence in market sentiment, with overall investor sentiment leaning bearish.
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Analyst Views on IONQ
Wall Street analysts forecast IONQ stock price to rise
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 33.610
Low
47.00
Averages
75.91
High
100.00
Current: 33.610
Low
47.00
Averages
75.91
High
100.00
About IONQ
IonQ, Inc. is engaged in the quantum computing and networking industry, delivering high-performance systems capable of solving complex commercial and research use cases. Its generation quantum computers, IonQ Forte and IonQ Forte Enterprise, are cutting-edge systems, boasting 36 algorithmic qubits. It sells specialized quantum computing and networking hardware together with related maintenance and support. It also sells access to several quantum computers of various qubit capacities and is in the process of researching and developing technologies for quantum computers with increasing computational capabilities. It makes access to its quantum computers available via three cloud platforms, Amazon Web Services' (AWS) Amazon Braket, Microsoft's Azure Quantum and Google's Cloud Marketplace, and also to select customers via its own cloud service. Its product portfolio also includes quantum key distribution (QKD) systems, quantum random number generators (QRNGs), and single-photon detectors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Norges Bank's Investment in IonQ Sparks Interest in Quantum Computing
- Increased Investment: Norges Bank raised its stake in IonQ to $200 million in Q4 while also investing in Rigetti and D-Wave, indicating a diversified investment strategy in quantum computing that may signal growing interest from active asset managers.
- Market Potential: Although the holdings remain small relative to market caps, Wedbush analysts view Norges Bank, as the world's largest sovereign wealth fund, as making a “sophisticated” bet on the long-term potential of quantum computing, potentially attracting more active managers into the space.
- Positive Technology Outlook: Wedbush reiterated its OUTPERFORM ratings on IonQ, Rigetti, and QBTS, maintaining a constructive view on the long-term prospects of quantum computing technology and its addressable market despite recent stock volatility, reflecting confidence in the industry's future.
- Investor Structure Shift: Norges Bank's investment may signify a shift in the investor landscape within quantum computing, moving from a dominance of retail investors and passive managers to increased participation from active managers, further propelling industry growth.
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- Market Sentiment Shift: Quantum computing stocks experienced broad mid-to-high single-digit losses on Thursday, reflecting a heightened risk-off sentiment in speculative tech, which has led to decreased investor confidence and increased market volatility.
- Poor Year-to-Date Performance: Year-to-date, most stocks in the quantum computing sector have declined by double digits, indicating ongoing pressure on the industry, particularly against a backdrop of elevated bearish positioning that has made investors cautious about future prospects.
- Short Interest Pressure: As of January 30, short interest rates reveal significant bearish sentiment, with Quantum Computing (QUBT) at 21.89% and IonQ (IONQ) at 20.80%, suggesting a lack of confidence in these companies and potential for further price declines.
- ETF Performance Analysis: The quantum computing ETF (Defiance Quantum ETF, QTUM) has also been affected, and the deteriorating market environment may impact investor decisions regarding long-term investments in the quantum computing sector, increasing uncertainty within the industry.
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Quantum Computing Stocks Face Major Risks Amidst Opportunities
- Market Potential: Quantum computing is projected to create between $450 billion and $850 billion in global economic value by 2040, offering substantial return potential for investors despite being significantly smaller than the trillion-dollar AI market.
- Stock Price Surge: As of October 2025, shares of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have skyrocketed by 670%, 6,217%, 3,912%, and 2,798% respectively over the past 12 months, reflecting strong market confidence in quantum computing.
- Significant Financing Risks: These four quantum computing companies collectively issued over $4.1 billion in common stock and warrants in 2025 to raise capital, indicating their unproven operating models and posing dilution risks for existing shareholders.
- Increased Competitive Pressure: With major players like Amazon and Microsoft ramping up investments in quantum computing, the low barriers to entry could threaten the market position of pure-play quantum companies, potentially leading to their obsolescence as the technology matures.
See More
Quantum Computing Stocks Surge Up to 6,200% Over the Past Year
- Quantum Stock Performance: As of mid-October, stocks of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. surged by up to 6,200% over the past year, reflecting strong investor confidence and robust market demand for this nascent technology.
- Market Potential Analysis: According to a forecast by Boston Consulting Group, quantum computing could generate between $450 billion and $850 billion in global economic value by 2040, attracting significant investor interest despite its smaller market size compared to artificial intelligence.
- Risks and Challenges: While quantum computing stocks present substantial return potential, they face risks such as share dilution and slow commercialization; collectively, these four companies issued over $4.1 billion in common stock and warrants in 2025 to raise capital, which could negatively impact existing shareholders.
- Competitive Pressure: With the
See More
Morgan Stanley Reduces IonQ Stake to 4.7%
- Stake Reduction Impact: Morgan Stanley Investment Management disclosed a reduction of its stake in IonQ to 4.7%, down from approximately 7% reported in August, which has now fallen below the 5% reporting threshold, potentially raising concerns about IonQ's future performance in the market.
- Funding Loss Allegations: Wolfpack Research alleged that IonQ lost funding for key Pentagon contracts, which accounted for up to 86% of its revenue from 2022 to 2024, resulting in a $54.6 million shortfall in expected bookings for 2025, further intensifying market skepticism regarding its financial health.
- Insider Stock Sales Issues: The short-seller also highlighted that IonQ insiders sold or authorized the sale of approximately $396.6 million in stock recently, which could raise investor concerns about corporate governance and transparency, thereby affecting market trust.
- Market Sentiment Shift: Despite IonQ's shares sliding 7% on Thursday and a cumulative decline of over 12% in the past three trading days, the stock rebounded by over 1% in overnight trading, indicating a divergence in market sentiment, with overall investor sentiment leaning bearish.
See More
IonQ's Quantum Computing Breakthroughs
- Technological Edge: IonQ's use of trapped-ion technology, which employs actual atoms to create qubits, results in greater stability compared to lab-made qubits, positioning the company as a leader in the quantum computing field.
- Acquisition Strategy: By acquiring Oxford Ionics, IonQ has not only improved its quantum computing accuracy but also enhanced qubit stability through the integration of microwave electronics, facilitating its commercialization efforts.
- High Precision Performance: Achieving a remarkable 99.99% two-gate fidelity, IonQ's high accuracy places it in a favorable position within the quantum computing market, showcasing its technological potential and competitive strength.
- Vertical Integration Plans: IonQ's pending acquisition of SkyWater Technology, a semiconductor foundry specializing in quantum computing, will enable vertical integration within the quantum ecosystem, enhancing its technological advantage in chip design.
See More
Norges Bank's Investment in IonQ Sparks Interest in Quantum Computing
- Increased Investment: Norges Bank raised its stake in IonQ to $200 million in Q4 while also investing in Rigetti and D-Wave, indicating a diversified investment strategy in quantum computing that may signal growing interest from active asset managers.
- Market Potential: Although the holdings remain small relative to market caps, Wedbush analysts view Norges Bank, as the world's largest sovereign wealth fund, as making a “sophisticated” bet on the long-term potential of quantum computing, potentially attracting more active managers into the space.
- Positive Technology Outlook: Wedbush reiterated its OUTPERFORM ratings on IonQ, Rigetti, and QBTS, maintaining a constructive view on the long-term prospects of quantum computing technology and its addressable market despite recent stock volatility, reflecting confidence in the industry's future.
- Investor Structure Shift: Norges Bank's investment may signify a shift in the investor landscape within quantum computing, moving from a dominance of retail investors and passive managers to increased participation from active managers, further propelling industry growth.
See More
Quantum Computing Stocks Experience Significant Decline Amid Risk-Off Sentiment
- Market Sentiment Shift: Quantum computing stocks experienced broad mid-to-high single-digit losses on Thursday, reflecting a heightened risk-off sentiment in speculative tech, which has led to decreased investor confidence and increased market volatility.
- Poor Year-to-Date Performance: Year-to-date, most stocks in the quantum computing sector have declined by double digits, indicating ongoing pressure on the industry, particularly against a backdrop of elevated bearish positioning that has made investors cautious about future prospects.
- Short Interest Pressure: As of January 30, short interest rates reveal significant bearish sentiment, with Quantum Computing (QUBT) at 21.89% and IonQ (IONQ) at 20.80%, suggesting a lack of confidence in these companies and potential for further price declines.
- ETF Performance Analysis: The quantum computing ETF (Defiance Quantum ETF, QTUM) has also been affected, and the deteriorating market environment may impact investor decisions regarding long-term investments in the quantum computing sector, increasing uncertainty within the industry.
See More
Quantum Computing Stocks Face Major Risks Amidst Opportunities
- Market Potential: Quantum computing is projected to create between $450 billion and $850 billion in global economic value by 2040, offering substantial return potential for investors despite being significantly smaller than the trillion-dollar AI market.
- Stock Price Surge: As of October 2025, shares of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have skyrocketed by 670%, 6,217%, 3,912%, and 2,798% respectively over the past 12 months, reflecting strong market confidence in quantum computing.
- Significant Financing Risks: These four quantum computing companies collectively issued over $4.1 billion in common stock and warrants in 2025 to raise capital, indicating their unproven operating models and posing dilution risks for existing shareholders.
- Increased Competitive Pressure: With major players like Amazon and Microsoft ramping up investments in quantum computing, the low barriers to entry could threaten the market position of pure-play quantum companies, potentially leading to their obsolescence as the technology matures.
See More
Quantum Computing Stocks Surge Up to 6,200% Over the Past Year
- Quantum Stock Performance: As of mid-October, stocks of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. surged by up to 6,200% over the past year, reflecting strong investor confidence and robust market demand for this nascent technology.
- Market Potential Analysis: According to a forecast by Boston Consulting Group, quantum computing could generate between $450 billion and $850 billion in global economic value by 2040, attracting significant investor interest despite its smaller market size compared to artificial intelligence.
- Risks and Challenges: While quantum computing stocks present substantial return potential, they face risks such as share dilution and slow commercialization; collectively, these four companies issued over $4.1 billion in common stock and warrants in 2025 to raise capital, which could negatively impact existing shareholders.
- Competitive Pressure: With the
See More
Morgan Stanley Reduces IonQ Stake to 4.7%
- Stake Reduction Impact: Morgan Stanley Investment Management disclosed a reduction of its stake in IonQ to 4.7%, down from approximately 7% reported in August, which has now fallen below the 5% reporting threshold, potentially raising concerns about IonQ's future performance in the market.
- Funding Loss Allegations: Wolfpack Research alleged that IonQ lost funding for key Pentagon contracts, which accounted for up to 86% of its revenue from 2022 to 2024, resulting in a $54.6 million shortfall in expected bookings for 2025, further intensifying market skepticism regarding its financial health.
- Insider Stock Sales Issues: The short-seller also highlighted that IonQ insiders sold or authorized the sale of approximately $396.6 million in stock recently, which could raise investor concerns about corporate governance and transparency, thereby affecting market trust.
- Market Sentiment Shift: Despite IonQ's shares sliding 7% on Thursday and a cumulative decline of over 12% in the past three trading days, the stock rebounded by over 1% in overnight trading, indicating a divergence in market sentiment, with overall investor sentiment leaning bearish.
See More
IonQ's Quantum Computing Breakthroughs
- Technological Edge: IonQ's use of trapped-ion technology, which employs actual atoms to create qubits, results in greater stability compared to lab-made qubits, positioning the company as a leader in the quantum computing field.
- Acquisition Strategy: By acquiring Oxford Ionics, IonQ has not only improved its quantum computing accuracy but also enhanced qubit stability through the integration of microwave electronics, facilitating its commercialization efforts.
- High Precision Performance: Achieving a remarkable 99.99% two-gate fidelity, IonQ's high accuracy places it in a favorable position within the quantum computing market, showcasing its technological potential and competitive strength.
- Vertical Integration Plans: IonQ's pending acquisition of SkyWater Technology, a semiconductor foundry specializing in quantum computing, will enable vertical integration within the quantum ecosystem, enhancing its technological advantage in chip design.
See More
