IonQ Stock Gets Stung: What's Going On?

IonQ Inc IONQ shares are trading lower Tuesday following a short report from Scorpion Capital. 

The activist short seller says IonQ's quantum computer with world-leading power is a hoax, propped up by misleading photos. Scorpion Capital suggests that IonQ is taking SPAC abuses to "new extremes."

The firm says IonQ is more of a side hustle than an actual company, referring to the company's quantum computer as a "useless toy" that can’t even perform simple addition. Scorpion Capital alleges that IonQ's revenue is fictitious as a result of "sham transactions and related-party round-tripping."

Scorpion Capital even suggests that IonQ CEO Peter Chapman falsified his educational credentials. If the short report is accurate, several big-name companies will be impacted alongside IonQ. 

Last year, Chapman told Benzinga that IonQ has investments or partnerships with Alphabet Inc GOOG, Amazon.com Inc AMZN and Microsoft Corp MSFT, among others. 

The fact that the company's competition has partnered with or invested in IonQ is an indication of where it stands in the quantum ecosystem, Chapman said: "We are that far ahead."

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IONQ Price Action: IonQ has traded as high as $35.90 over a 52-week period. It hit 52-week lows on Tuesday.

The stock was down 10.2% at $7.06 at press time.

Photo: courtesy of IonQ.