Up 1,200%, Should You Buy IonQ Right Now?

IonQ's (NYSE: IONQ) share price gains over the past three years have been impressive. The stock price is up more than 1,200% since the beginning of 2023, and its shareholders are no doubt hoping the good times will continue through 2026 and beyond.

But is it a good time for investors to jump on board with this popular quantum computing stock, or is it best to sit this one out? I believe investors would be better off avoiding IonQ stock for several key reasons.

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IonQ's stock is expensive

As its name suggests, IonQ is focused on trapped-ion quantum computing, which enables quantum computers to operate at room temperature. While still in its infancy, this trapped-ion process can make reliable quantum computing easier to achieve and less difficult to use than ultra-cooled quantum computers, which is why the tech has piqued investor interest.

With IonQ's share price skyrocketing over the past several years, it should come as no surprise that the stock is expensive. But even by the standards of high-flying tech stocks, this one is pricey.

IonQ's shares have a price-to-sales ratio of 140, which is far beyond the technology sector's average P/S ratio of just under 9. That's a massive gap between the two, and it shows just how much more investors are paying to own IonQ right now.

Even if the company were profitable (it's not) and quantum computing were a sure thing (it isn't), this is a hefty price tag to pay for IonQ's shares and a clear warning for investors to stay away.

The company's losses are widening

IonQ delivered impressive sales growth in the third quarter, with revenue rising 222% to nearly $40 million. ​​Despite that huge increase, the company's losses continued to expand.

IonQ's non-GAAP (adjusted) loss per share was $0.17, which was worse than its loss of $0.11 per share in the year-ago quarter. It's important to note that this decline is after the one-time accounting charge and acquisition costs from the quarter have been taken out.

IonQ's operating expenses are rising, too, and increased to $208 million in the third quarter, up from about $65 million in the year-ago quarter. Even with its impressive sales growth, the company continues to ramp up spending to a degree that its losses are expanding instead of narrowing.

Quantum computing speculation is sky high

This isn't IonQ's fault, per se, but the company's share price has benefited from the speculative nature of the quantum computing market. Many tech companies, even ones working on quantum computing, say that practical use cases for the technology are still years away.

Consider that Alphabet, which has made several important advancements in quantum computing, says that "useful" quantum computers are still five to 10 years away.

Investors have been very optimistic about speculative investments for some time, but we're already beginning to see the tide turning for certain stocks, including IonQ. The company's share price rose just 9% in 2025 -- compared to the S&P 500's gain of nearly 17%.

If the economy slows down, you can expect investments in speculative corners of the market, including quantum computing, to slow as well. Investors have enjoyed great times in the market, partially thanks to artificial intelligence stocks. But if they catch wind of a recession or begin to worry that more layoffs are on the horizon, they'll likely flee to safer investments.

Don't buy IonQ stock

This quantum computing stock looks more like a gamble right now than a solid investment. IonQ's shares are too expensive, its losses are too wide, and the quantum computing market still has much to prove over the coming years. All of these reasons combined should point investors away from buying IonQ stock right now.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and IonQ. The Motley Fool has a disclosure policy.