IonQ shares fell following Kerrisdale Capital's short-selling report.

Investing.com -- IONQ Inc (NYSE: IONQ) shares fell 4% today after Kerrisdale Capital identified the quantum computing company as a short-selling target. The investment management firm released a detailed report criticizing IonQ’s valuation, scalability challenges, and transparency towards investors.

Kerrisdale Capital expressed skepticism about IonQ’s high growth projections and questioned the viability of its technology. The firm emphasized that despite IonQ’s claims of significant technical and commercial milestones, it is struggling with scalability. The report projected IonQ would increase its physical qubits from approximately 80-100 today to over 4,000 by 2026 and 32,000 by 2028. However, Kerrisdale argued that the company's reliance on photonic interconnect technology for scaling trapped ion computing modules remains far from commercially viable, raising serious concerns for investors.