IonQ, Inc. (IONQ) Hits Amazon… Again: Should Investors Buy Into the Surge?

On May 17, at Commercialising Quantum Global 2023, IonQ, Inc. (IONQ), which develops general-purpose quantum computing systems and makes them available through various cloud platforms and direct API access, announced that its most-powerful commercially available quantum computer IonQ Aria would be available on Amazon Braket, AWS’s quantum computing service.

This announcement marks IONQ’s latest addition to Amazon’s cloud platform after the debut of its harmony system in 2020. Although both Aria and Harmony would be available on Braket to be used as per the users’ discretion, with 25 algorithmic qubits (#AQ), the former’s computing power is more than 65,000 times that of the latter.

Further details regarding Aria’s performance, capabilities, and applications are available here.

Increasing the number of qubits, along with the number of processor operations (known as gates), makes it more likely that mistakes will creep in during calculations by making quantum computing systems susceptible to the tiniest of disturbances, including minuscule amounts of heat or radio-wave energy. In this context, it isn’t difficult to see why Aria’s commercialization is a big deal.

With users now able to explore, design, and run more complex quantum algorithms to tackle some of the most challenging problems of today across industries such as finance, healthcare, chemistry, and manufacturing, IonQ Aria has been justifiably embraced by Airbus, GE Research, Dow Chemistry, Hyundai Motors, and the United States Air Force Research Laboratory.

The markets have been prompt to mirror the optimism, to say the least. The stock has surged more than 83% over the past month to trade above its 50-day and 200-day moving averages.

However, just as we have learned during the dot-com, cryptocurrency, real estate, and numerous other bubbles through the ages, even if the next big thing comes along and changes the world (and the Internet really did), its fundamentals that determine whether a business can survive to capitalize on those windfalls.

For the fiscal year 2023 first quarter that ended March 31, although IONQ’s revenue increased by 119.4% year-over-year to $4.29 million, the topline growth has not been translated to its bottom-line improvement. The company’s loss from operations and net loss widened by 53.3% and 546.7% year-over-year to come in at $28.02 million and $27.34 million, respectively.

With the age of easy money well and truly behind us, a business with the aforementioned (lack of) financial performance would have been written off had it not been in an industry as promising as quantum computing. Continue reading "IonQ, Inc. (IONQ) Hits Amazon… Again: Should Investors Buy Into the Surge?"

Why Would Jeff Bezos Buy An Old Fashion Newspaper?

On Monday, it was reported that Jeff Bezos of Amazon (NASDAQ:AMZN) fame, paid a reported $250 million in cash to purchase the Washington Post (NYSE:WPO) newspaper. I say, "congratulations Jeff," it was a brilliant strategic move on your part. Now it must be said that this was not Amazon purchasing the Washington Post, but rather Jeff Bezos personally purchasing this property. So you have to ask yourself, what would a savvy Internet guy want with a newspaper?

Here's my take on it, Amazon has become a juggernaut on the Internet in terms of Internet commerce. I use Amazon myself like millions of others and it is a great service. When you're looking for a product, it's easy to go to Amazon and forget most every other site on the Internet.

Somewhere along the line, there is going to be some politician who will say that Amazon is a monopoly and should be broken up, as it stifles competition. So what's the perfect defense and check mate for an attack on your biggest investment and Internet baby? To me, owning and controlling the most powerful newspaper in a politically-driven town like Washington D.C., could give him power not attainable through other avenues.

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Put the power of the Trade Triangles to work for you

So the question is, can Jeff Bezos work his same magic with the Washington Post? Just look back in history at how William Randolph Hearst controlled the news and the news media in America, and the power it gave him. Whoever controls the media, can have a huge influence on the sentiment and direction of the country. That I think, is the ultimate goal of Mr. Bezos.

I think Jeff Bezos' plan for the Washington Post is going to be very similar to the plan he has for Amazon. Forgo profits, and build until you eventually create unstoppable momentum and you become a king maker in the news industry.

Don't think for one moment that Amazon is not politically smart. A little over a week ago, employees of Amazon contributed $116,000 to the democratic party for President Obama to fly down to Chattanooga, Tennessee to be at the opening of one of their new distribution centers.

In today's video, I will be looking at the Washington Post (NYSE:WPO) and seeing how our Trade Triangles fared in trading this stock.

Have a great trading day,

Adam Hewison
Co-Creator, MarketClub

From Books to Everything Else

When Jeff Bezos was searching for a name for his new internet start-up back in 1994, he wanted something that was impressive and sounded big. You see, Jeff wanted to sell books at a discount on the Internet and size to Jeff was important. He believed that his small start-up in time, could effectively become a category killer for the likes of Barnes and Noble and Borders.

The name Jeff eventually decided on for his new start-up was Amazon (NASDAQ:AMZN), and like the mighty Amazon itself, whose mouth is growing an average of two meters every year, Jeff wanted volume. So what better name to choose since by volume, the Amazon River is the world’s largest river.

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So what are you waiting for? Let's get started right away!

From books to everything else, Amazon (NASDAQ:AMZN) has become a juggernaut in the marketplace and now dominates sales on the internet. Jeff had all the stars aligned with his new company, the right name, the right concept and the right timing back in 1995 when Amazon opened its website for business.

Now CEO Jeff Bezos was not looking for quick profits or to flip his company, rather Amazon's goal was to grow free cash flow, basically cash from operations less all other charges. That is the key distinction for Amazon and one that separates it from other Internet and earnings-driven companies. As one Wall Street-er said, "Earnings are an opinion; cash is a fact."

Kudos to you Jeff, and thank you for providing a great stock to trade with our Trade Triangles.

Today, we will be analyzing the stock of Amazon (NASDAQ:AMZN) in detail. The video runs about 2 minutes.

Enjoy the video, and every success in your own trading.

Adam Hewison
Co-Creator, MarketClub

Today's Video Update: Stocks Rise Ahead of Earnings

Hello traders everywhere! Adam Hewison here, President of and Co-creator of MarketClub, with your mid-day market update for Monday, the 8th of July.

Earlier today we posed the question, "Are the odds in your favor for a up market in July?" Well, it certainly seems so, given this mornings trading action, all the indices are on the plus side of the ledger so far for the month.

Today's Profit Taking In The Crude Oil Market Doesn't Change The Trend
Crude oil is seeing a little bit of profit-taking coming into the market after its recent sharp run up. I have an upside target zone of $110 level for crude and I expect the upward trend to continue for a while longer. Look for any pullbacks to present buying opportunities rather than a shorting opportunity. The trend is clearly established to the upside, so trade accordingly. Continue reading "Today's Video Update: Stocks Rise Ahead of Earnings"

Today's Video Update: GDP Misses, But The Fed Will Buy Us Out Of Slow Growth Right?

Hello traders everywhere! Adam Hewison here, President of and Co-creator of MarketClub, with your mid-day market update for Friday, the 26th of April.

GDP Slows
Gross Domestic Product (GDP) expanded at a tepid 2.5 percent annual rate, the Commerce Department reported on Friday, after growth nearly stalled at 0.4 percent in the fourth quarter. The dismal increase missed economists' expectations for a 3.0 percent growth pace. I guess a trillion dollars a year in stimulus spending doesn't get you very much anymore. Not to worry, as the Fed is supporting stock prices and that's all that seems to matter to this administration. Continue reading "Today's Video Update: GDP Misses, But The Fed Will Buy Us Out Of Slow Growth Right?"