IonQ stock down 24.07% year to date
Jim Cramer is steering clear of IonQ due to rising interest rates. The stock is trading at $33.03, down 24.07% year to date.
IonQ’s stock peaked at $72 in late May before losing more than half its value. The company is burning significant cash and is valued using long-duration discount models.
The rate sensitivity argument is specific and well-established in market history. Companies like IonQ are affected by rising interest rates, making them tough to own.
The Trump administration plans to invest over $2 billion in the quantum computing sector, but Cramer’s objection is about the macro environment, not IonQ’s technology.