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Stock-Split Watch: Is Ionq next?

According to several leading tech companies, shares in 2024 carried out shares – such as: Palo Alto Networks And Super Micro computer – Many investors have searched for indications that state whether additional tech shares will also share their shares in 2025.

In the past three years, increases by more than 520%, a pioneer in the quantum computer, Ionq (Ionq -4.98%)))is such a popular tech share, which is currently being drawn to investor interest as potential stocks.

But does the impressive increase in the stock necessarily mean that management is preparing for stock splitting in the near future? Let us take a closer look at the probability that Ionq will soon appear in the Split Split.

Image source: Getty Images.

What is the latest rise behind Ionq's?

Before you investigate how likely it is that Ionq split its stock, it is good to step back and check why the stock has increased so much.

In the past three years, Ionq has made enormous progress in the growth of his business with the starts of his Aria and Forte Quantum Computer – something that the market has significantly rewarded. After a turnover of $ 1.4 million in 2021, Ionq booked sales of $ 43.1 million and IT projects in 2024, which had further growth in 2025. Should the company achieve the center of its sales guidelines from 2025, the company will be increased from 2021 to 2025 by sales with a composed annual growth rate of 170%.

It is not only at the top of the profit and loss account in which Ionq has success. Ionq expanded its gross profit from USD 1.1 million to USD 22.5 million in 2024, which achieved a gross profit margin of 59.9% in the period of four years.

Calculation of the likelihood that IonQ announces a share splitting

Many investors are highly motivated to identify potential stock splits, and believe that if they buy shares in a better position with the larger number of shares, which they have after dividing, if they are in the case of forward -shares – splits. Experienced investors, however, know that this logic is incorrect. Just as you divide a pizza pizza into thirds, it gives more shares according to a forward share, but there is no change in the value of your investment more shares.

Why do companies divide their shares? There are a variety of reasons, although it is most often due to the fact that the share prices have risen to points that could prevent investors from buying a share. If you understand this, investors who examine Ionq will probably come to the conclusion that it is very unlikely that management will increase up to 55 US dollars last year last year and will act around 35 US dollars in this letter.

To get Ionq and a potential stock, take up the Palo Alto networks and Super Micro computer shares mentioned above. Before they divided their shares last year, both were traded close to $ 400 per share.

Is the time for Quantum Computing investors now to load Ionq?

In view of the prospect of a share that the table has divided, investors may be wondering whether it is still a reasonable time to click on the buying button on IONQ shares. Since the company does not generate a positive net income, traditional evaluation metrics are not helpful, but since the shares have been around 16% for around 16%, it seems that today offers a better chance than at the beginning of the year. Of course, those who are interested in a position should carry out their diligence before making a final decision.

Scott Levine has no position in one of the types mentioned. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy.

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