IonQ Stock Gets Stung: What's Going On?

IonQ Inc (NYSE: 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 (NASDAQ: GOOG), Amazon.com Inc (NASDAQ: AMZN) and Microsoft Corp (NASDAQ: 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.