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2 Quantum Stocks That Are a Sell Today Despite Long-Term Promise
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Key Takeaways
IonQ posted strong revenue growth, raised 2026 guidance and expanded its quantum technology capabilities.
RGTI nearly tripled revenues, launched a 108-qubit system and ended the quarter with no debt.
IonQ and RGTI face pressure from elevated valuations, higher rates and delayed profitability.
IonQ (IONQ - Free Report) and Rigetti Computing (RGTI - Free Report) remain among the leading names in the quantum computing industry, but that has not insulated the stocks from recent selling pressure. With interest rates expected to stay elevated and profitability still years away, investors have turned cautious, sending IonQ shares down 11.1% and Rigetti shares down 19.2% over the past month.
The recent pullback reflects changing investor sentiment rather than a deterioration in business fundamentals. Both companies continue to execute on their technology roadmaps and expand commercial traction.
One-Month Price Performance
Image Source: Zacks Investment Research
Valuation remains another concern. Even after the recent correction, both stocks continue to trade at a substantial premium to the broader technology sector. IonQ currently trades at about 64.2x forward 12-month sales, while Rigetti trades at roughly 186.9x, compared with the Computer and Technology sector average of 6.77x. Such elevated multiples leave little room for execution missteps and make the stocks particularly vulnerable during periods of rising interest rates.
Image Source: Zacks Investment Research
Strong Execution Continues
IonQ's first-quarter 2026 revenues of $64.7 million increased more than eightfold year over year. The company raised its full-year revenue outlook to $260-$270 million and expanded its remaining performance obligations to $470 million. Management noted about accelerating demand for quantum computing systems, progress on its 256-qubit platform, expanding quantum networking capabilities and continued momentum across government contracts and enterprise customers. IonQ also completed its acquisition of SkyWater, adding domestic semiconductor manufacturing capabilities.
Rigetti likewise reported encouraging operational progress. The company launched its 108-qubit Cepheus-1 system across major cloud platforms, nearly tripled revenues year over year to $4.4 million, continued expanding deployments of its Novera quantum processing units and systems and reiterated its roadmap to achieve quantum advantage in roughly three years. It also ended the quarter with approximately $569 million in cash, cash equivalents and investments and no debt, providing ample financial flexibility to support continued research and development.
Macro Headwinds Affect Strong Execution
The pressure is largely coming from outside the companies. The latest macroeconomic data point to a less supportive backdrop for speculative growth stocks. Going by BLS’ May 2026 report, the Consumer Price Index (CPI) rose 4.2% year over year in May, marking the fastest pace of inflation since April 2023, while core CPI increased 2.9%.
Meanwhile, the unemployment rate held steady at 4.3% in May and nonfarm payrolls increased by 172,000, underscoring a still-resilient labor market. In response, the Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75% at its June 17 meeting and signaled a more hawkish outlook as inflation remains above its 2% target. Higher Treasury yields and expectations that rates could stay elevated for longer have reduced investor appetite for long-duration growth stocks.
Companies like IonQ and Rigetti, whose valuations depend heavily on earnings expected years into the future, are particularly sensitive to higher discount rates and changing monetary policy expectations.
Bottom Line
IonQ and Rigetti remain well-positioned to capitalize on the long-term growth of the quantum computing industry, supported by technological advancements, expanding commercial partnerships and solid balance sheets. However, their lofty valuations, lack of near-term profitability and an unfavorable macro environment could continue to weigh on their shares in the coming months.
Given the limited near-term upside and elevated risks, both stocks currently carry a Zacks Rank #4 (Sell). Investors may consider trimming their holdings or taking partial profits while awaiting a more attractive entry point as commercialization and earnings visibility improve.
View the Zacks #1 Rank List
Image: Bigstock
2 Quantum Stocks That Are a Sell Today Despite Long-Term Promise
Key Takeaways
IonQ (IONQ - Free Report) and Rigetti Computing (RGTI - Free Report) remain among the leading names in the quantum computing industry, but that has not insulated the stocks from recent selling pressure. With interest rates expected to stay elevated and profitability still years away, investors have turned cautious, sending IonQ shares down 11.1% and Rigetti shares down 19.2% over the past month.
The recent pullback reflects changing investor sentiment rather than a deterioration in business fundamentals. Both companies continue to execute on their technology roadmaps and expand commercial traction.
One-Month Price Performance
Image Source: Zacks Investment Research
Valuation remains another concern. Even after the recent correction, both stocks continue to trade at a substantial premium to the broader technology sector. IonQ currently trades at about 64.2x forward 12-month sales, while Rigetti trades at roughly 186.9x, compared with the Computer and Technology sector average of 6.77x. Such elevated multiples leave little room for execution missteps and make the stocks particularly vulnerable during periods of rising interest rates.
Image Source: Zacks Investment Research
Strong Execution Continues
IonQ's first-quarter 2026 revenues of $64.7 million increased more than eightfold year over year. The company raised its full-year revenue outlook to $260-$270 million and expanded its remaining performance obligations to $470 million. Management noted about accelerating demand for quantum computing systems, progress on its 256-qubit platform, expanding quantum networking capabilities and continued momentum across government contracts and enterprise customers. IonQ also completed its acquisition of SkyWater, adding domestic semiconductor manufacturing capabilities.
Rigetti likewise reported encouraging operational progress. The company launched its 108-qubit Cepheus-1 system across major cloud platforms, nearly tripled revenues year over year to $4.4 million, continued expanding deployments of its Novera quantum processing units and systems and reiterated its roadmap to achieve quantum advantage in roughly three years. It also ended the quarter with approximately $569 million in cash, cash equivalents and investments and no debt, providing ample financial flexibility to support continued research and development.
Macro Headwinds Affect Strong Execution
The pressure is largely coming from outside the companies. The latest macroeconomic data point to a less supportive backdrop for speculative growth stocks. Going by BLS’ May 2026 report, the Consumer Price Index (CPI) rose 4.2% year over year in May, marking the fastest pace of inflation since April 2023, while core CPI increased 2.9%.
Meanwhile, the unemployment rate held steady at 4.3% in May and nonfarm payrolls increased by 172,000, underscoring a still-resilient labor market. In response, the Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75% at its June 17 meeting and signaled a more hawkish outlook as inflation remains above its 2% target. Higher Treasury yields and expectations that rates could stay elevated for longer have reduced investor appetite for long-duration growth stocks.
Companies like IonQ and Rigetti, whose valuations depend heavily on earnings expected years into the future, are particularly sensitive to higher discount rates and changing monetary policy expectations.
Bottom Line
IonQ and Rigetti remain well-positioned to capitalize on the long-term growth of the quantum computing industry, supported by technological advancements, expanding commercial partnerships and solid balance sheets. However, their lofty valuations, lack of near-term profitability and an unfavorable macro environment could continue to weigh on their shares in the coming months.
Given the limited near-term upside and elevated risks, both stocks currently carry a Zacks Rank #4 (Sell). Investors may consider trimming their holdings or taking partial profits while awaiting a more attractive entry point as commercialization and earnings visibility improve.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.