Shares of quantum computing company IonQ (NYSE:IONQ) fell approximately 3% to $21.17 on Thursday after Kerrisdale Capital announced it has taken a short position in the firm.
The investment firm criticized IonQ, stating that "massive scaling challenges and reliance on photonic interconnects" indicate the company is far from delivering a commercially viable product.
Kerrisdale further warned that "as reality sets in on the quantum computing bubble, IONQ remains wildly inflated."
Reuters could not independently verify the claims in the short seller’s report, and IonQ did not immediately respond to a request for comment.
Despite the recent dip, IonQ’s stock has more than tripled in value over the course of 2024, reflecting significant investor enthusiasm for the quantum computing sector.