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Globe and Mail
2 hours ago
- Globe and Mail
Better Quantum Computing Stock: IonQ vs. Rigetti Computing
Key Points IonQ and Rigetti Computing have developed fundamentally different methods to create quantum computers. IonQ aspires to build the internet of the future while Rigetti focuses on commercializing its superconducting qubit technology. Neither IonQ nor Rigetti are profitable, although they have amassed large sums of cash to fund their operations. 10 stocks we like better than IonQ › The quantum computing industry is a promising area to invest in. Quantum machines can complete complex calculations in minutes that would take classical computers centuries, thanks to the power of quantum mechanics. In the sector, IonQ (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI) are among the prominent players. IonQ uses ions to power its quantum machines while Rigetti employs the traditional superconducting qubits process. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Both have seen impressive share price increases over the past year. IonQ stock is up over 400% through July 23 while Rigetti climbed more than 1,000% in that time. Is one a better investment in the nascent quantum computing field? Examining these businesses in more detail can help to arrive at an answer. Rigetti Computing's tried-and-true tech Rigetti uses a proven method of producing qubits. Qubits are a quantum device's equivalent to a classical computer's bit. But while bits represent a zero or one, the properties of quantum mechanics mean qubits can be both at the same time, enabling orders of magnitude faster processing speeds. Superconducting qubits offer several advantages. They can be manufactured using existing semiconductor chip processes, and can complete calculations faster than ion-based quantum machines. Rigetti hopes to gain greater commercialization with the latest version of its quantum computer, the Ankaa-3 system, which launched at the end of 2024. However, the technology isn't cheap. Superconducting qubits require special cryogenic equipment to keep temperatures colder than outer space. This is necessary for qubits to maintain stability long enough to perform calculations before they break down. As a result, the company exited the first quarter with an operating loss of $21.6 million on sales of $1.5 million. The loss is 30% greater than the previous year while Q1 revenue plunged 52% year over year. This combination of falling revenue and rising costs is unsustainable over the long run. That's why Rigetti executed a $350 million equity offering that helped it build up a stockpile of $575 million in cash, cash equivalents, and investments with no debt as of June 11. This cash hoard should sustain the company's operations in the short term, but it will need to produce revenue growth to build a sustainable business. IonQ's lofty ambition to remake the internet IonQ's ion-based method holds several advantages over superconducting qubits. Its tech can operate at room temperature, eschewing the need for cryogenic equipment. The technology also offers low error correction rates. Because qubits quickly break down, quantum computers are prone to calculation mistakes that limit their ability to scale. IonQ's reduced error rates make scalability a possibility. Consequently, the company aims to construct a quantum computing network, reminiscent of the infrastructure that underpins today's world wide web. It pursued several acquisitions to achieve its goal of building "the next generation of the internet," in the words of IonQ Chairman Peter Chapman. But like Rigetti, IonQ's costs are rising. It posted a Q1 operating loss of $75.7 million, an increase from 2024's $52.9 million, on revenue of $7.6 million. So it, too, is pursuing an equity offering to the tune of $1 billion. In addition, IonQ believes it can hit revenue of $75 million to $95 million in 2025. This would be a strong increase over 2024, when sales soared 95% year over year to $43.1 million. Making the choice between IonQ and Rigetti Computing stock Although Rigetti's superconducting qubits technology is well established in the quantum computing industry, IonQ's approach is producing higher sales. On top of that, another factor to consider is share price valuation. This can be assessed using the price-to-sales (P/S) ratio, a metric commonly used when companies are not profitable. Data by YCharts. The chart reveals Rigetti's P/S multiple has skyrocketed from where it was a year ago, and is far higher than IonQ's as well. This suggests Rigetti stock is overpriced, making IonQ the better value. That said, IonQ stock is not cheap, given it has a P/S ratio exceeding 200. While quantum computers hold the promise of revolutionizing the computing industry, whether IonQ or Rigetti's approach will win out in the end is far from certain. After all, quantum computing is still in its infancy. Its market size was just $4 billion in 2024, although industry estimates predict rapid growth to $72 billion by 2035. As of now, IonQ's 2024 sales success coupled with an outlook of 2025 revenue growth, and a far better valuation compared to Rigetti, make its stock the superior quantum computing investment between these two businesses. Ideally, wait for a dip in IonQ's share price, and for its Q2 results to validate it's on a trajectory to hit 2025 sales targets before deciding to pick up shares. Should you invest $1,000 in IonQ right now? Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
Calgary Herald
4 hours ago
- Calgary Herald
EU, US reach deal to avoid Trump tariff hike before deadline
Article content 'The starting point was an imbalance,' von der Leyen said. 'We wanted to rebalance the trade we made, and we wanted to do it in a way that trade goes on between the two of us across the Atlantic, because the two biggest economies should have a good trade flow.' Article content The announcement capped off months of often tense shuttle diplomacy between Brussels and Washington. The two sides appeared close to a deal earlier this month when Trump made his 30% threat. Article content The EU had prepared to put levies on about €100 billion ($117 billion) — about a third of American exports to the bloc — if a deal wasn't reached and Trump followed through on his warning. Article content US and European negotiators had been zeroing in on an agreement this past week, and the decision for von der Leyen to meet Trump at his signature golf property brought the standoff to a dramatic conclusion. Article content Officials had discussed terms for a quota system for steel and aluminum imports, which would face a lower import tax below a certain threshold and would be charged the regular 50% rate above it. The EU had also been seeking quotas and a cap on future industry-specific tariffs, but it's unclear if the initial agreement will shield the bloc from potential levies that have yet to be implemented. Article content Article content US Commerce Secretary Howard Lutnick said a decision on semiconductors, which, like drugs are subject to an ongoing investigation that opens the door to separate tariffs, would be dealt with in roughly 'two weeks' when that probe ends. Article content The EU for weeks indicated a willingness to accept an unbalanced pact involving a reduced rate of around 15%, while seeking relief levies on industries critical to the European economy. The US president has also imposed 25% duties on cars and double that rate on steel and aluminum, as well as copper. Article content Several exporters in Asia, including Indonesia, the Philippines and Japan, have negotiated reciprocal rates between 15% to 20%, and the EU saw Japan's deal for 15% on autos as a breakthrough worth seeking as well. Washington's talks also continue with Switzerland, South Korea and Taiwan. Article content Article content Trump said he is 'looking at deals with three or four other countries' but 'for the most part' others with smaller economies or less significant trading relationships with the US would receive letters simply setting tariff rates. Article content Trump announced a range of tariffs on almost all US trading partners in April, declaring his intent to revive domestic manufacturing, help pay for a massive tax cut and address economic imbalances he has said are detrimental to US workers. He put them on pause a week later due when investors panicked. Article content Trump's decades-old complaints about the global trading system heap particularly sharp scorn on the EU, which he has accused of being formed to 'screw' the US. The bloc was established in the years following World War II in order to establish economic stability on the continent. Article content The president has lashed out at non-tariff barriers for American companies to do business across the 27-nation bloc. Those include the EU's value-added tax, levies on digital services, and safety and environmental regulations. Article content
Global News
5 hours ago
- Global News
Trump begins EU trade discussions at golf resort meeting in Scotland
President Donald Trump headed into high-stakes talks Sunday with a top European official demanding fairer trade with the 27-member European Union and threatening steep tariffs to achieve that while insisting the United States will not go below 15 per cent import taxes. Make-or-break talks could head off punishing U.S. tariffs and promised retaliation from Europe that could send shock waves through economies around the globe. European Commission chief Ursula von der Leyen, seated next to Trump at his golf resort on the Scottish coast, called for a rebalancing of bilateral trade worth billions of dollars between the vital partners. Speaking to reporters before their private meeting, she and Trump put the chances of reaching an agreement at 50-50 as Friday's White House deadline neared. 'This is bigger than any other deal,' Trump said. He suggested they could cut a deal in just a short time. Story continues below advertisement Trump called von der Leyen 'highly respected' and meeting with her at his Turnberry golf course, where he played in the morning, was an honor. 'The main sticking point,' the Republican president said, was 'fairness.' View image in full screen President Donald Trump meets European Commission President Ursula von der Leyen at the Trump Turnberry golf course in Turnberry, Scotland Sunday, July 27, 2025. (AP Photo/Jacquelyn Martin). For months, Trump has threatened most of the world with large tariffs in hopes of shrinking major U.S. trade deficits with many key trading partners, including the EU. Trump has hinted that any deal with the EU would have to 'buy down' the currently scheduled tariff rate of 30 per cent. During the remarks before the media Sunday, he pointed to a recent U.S. agreement with Japan that set tariff rates for many goods at 15 per cent and suggested the EU could agree to something similar. Get daily National news Get the day's top news, political, economic, and current affairs headlines, delivered to your inbox once a day. Sign up for daily National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Asked if he would be willing to accept tariff rates lower than that, Trump said 'no.' Story continues below advertisement Their meeting came after Trump played golfed for the second straight day at his Turnberry course on the southwest coast of Scotland, this time with a group that included sons Eric and Donald Jr. The president's five-day visit to Scotland is built around golf and promoting properties bearing his name. View image in full screen US President Donald Trump plays golf at his Trump Turnberry golf course in South Ayrshire, during his five-day private trip to the country. Picture date: Sunday July 27, 2025. (PA Photo: Jane Barlow/PA Wire). A small group of demonstrators at the course waved American flags and raised a sign criticizing British Prime Minister Keir Starmer, who plans his own Turnberry meeting with Trump on Monday. Other voices could be heard cheering and chanting 'Trump! Trump!' as he played nearby. On Tuesday, Trump will be in Aberdeen, in northeastern Scotland, where his family has another golf course and is opening a third next month. The president and his sons plan to help cut the ribbon on the new course. Joining von der Leyen were Maros Sefcovic, the EU's chief trade negotiator; Björn Seibert, the head of von der Leyen's Cabinet; Sabine Weyand, the commission's directorate-general for trade, and Tomas Baert, head of the trade and agriculture at the EU's delegation to the U.S. Story continues below advertisement 1:06 Trump visits Scotland to open new golf resort, sparking mixed local response The U.S. and EU seemed close to a deal earlier this month, but Trump instead threatened the 30 per cent tariff rate. The deadline for the Trump administration to begin imposing tariffs has shifted in recent weeks but is now firm, the administration insists. 'No extensions, no more grace periods. Aug. 1, the tariffs are set, they'll go into place, Customs will start collecting the money and off we go,' U.S. Commerce Secretary Howard Lutnick told 'Fox News Sunday.' He added, however, that even after that 'people can still talk to President Trump. I mean, he's always willing to listen.' Lutnick said the EU 'needs to make a deal and wants to make a deal and they are flying to Scotland to make a deal with President Trump. The question is do they offer President Trump a good enough deal that is worth it for him to step off of the 30 per cent tariffs that he set.' Story continues below advertisement View image in full screen President Donald Trump meets European Commission President Ursula von der Leyen at the Trump Turnberry golf course in Turnberry, Scotland Sunday, July 27, 2025. (AP Photo/Jacquelyn Martin). Without an agreement, the EU says it is prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes. If Trump eventually makes good on his threat of tariffs against Europe, it could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the United States. The U.S. and Britain, meanwhile, announced a trade framework in May and a larger agreement last month during the Group of Seven meeting in Canada. Trump says that deal is concluded and that he and Starmer will discuss other matters, though the White House has suggested it still needs some polishing.
