TheBadPlaceYahoo Finance | Why IonQ Stock Plummeted 24.9% in March
The new year hasn't been very kind to IonQ (NYSE: IONQ) stock. After dipping nearly 11% and 4% in January and February, respectively, shares of the quantum computing powerhouse tumbled even more last month. According to data provided by S&P Global Market Intelligence, shares of IonQ dropped 24.9% in March.
In addition to the market's shift away from growth stocks since the conflict in Iran began in late February, IonQ's stock performance can be traced to several analysts who have lowered their price targets over the past few weeks. The widespread action among analysts to lower IonQ's price targets represented another major catalyst for the quantum computing stock's decline. While the analysts revealed their lower price targets in the last days of trading in February, the effects rippled through the following weeks. Some of the more bearish takes on IonQ stock came from DA Davidson, which cut its price target to $35 from $55, and JPMorgan Chase, which slashed its price target to $42 from $47. Besides lower price targets, the U.S. government's decision to commence military operations in Iran gave investors more reason to press the sell button on IonQ stock. With the start of the military action and repeated indications that a resolution to the conflict was nowhere in sight, investors shifted their focus away from growth stocks, moving toward more conservative investment options to help them endure market volatility.
Since IonQ shares are down about 35% as of this writing, investors are likely wondering whether now's the time to pivot away from IonQ stock. It's a valid question, but the fact is that if you had been bullish on IonQ stock's prospects before March, there's no reason to be less bullish now. Sure, it can be unsettling to see analysts cut their price targets on one of your holdings. Still, it's times like these to remember that the company's strong financial results are more material to an IonQ investment than analysts' opinions. The company is growing revenue and demonstrating the commercial viability of its quantum computing business. For exposure to the nascent industry, IonQ is one of the most promising quantum computing stocks to consider.
Read more: https://finance.yahoo.com/markets/stocks/articles/why-ionq-stock-plummeted-24-092000593.html
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