I Sold out of IonQ and Maybe Made a Stupid Impulsive Decision. Also, I got Rejected From my Top College Halfway Through Writing. Keep Reading to Find out Which School it Was!
Well, I pulled the trigger and sold out of IonQ. In this article, we’re going to chat about why I chose to sell out, and where I want to go with my money.
I chose to sell out for a few simple reasons. First, Google’s massive investment/breakthrough in quantum freaked me out a bit. Google unveiled a new quantum-computing chip, Willow, that will likely be transformative for the industry. This chip is a sign that Google will be ramping up its quantum-computing investment, and I don’t want to invest in a super-small company with 1/billionth the assets to pour into competition. Simply, the chances that IonQ beats Google in quantum are low, so I would just be hoping for Google, or a similar company, to try and buyout IonQ, which is not a game I am super interested in.
Second, my gains had dropped from a bit over 50% to a bit over 30%, which is the point I told myself I would sell, and I did. On that small ride down, was a day where IonQ took a 12% hit, which was a bit scary.
Third, and this is sort of cheating because this is pretty much my first reason, I just disagree with the idea of co-existence and room for substantial growth for IonQ. I don’t want to buy Lyft.
Fourth, I had some decent gains, and I don’t think there is anything wrong with taking the gains and splitting. While 30% is less than 50%, sadly, I grew my money quickly in a risky investment, which is never even probable, usually. I think taking the gains and splitting was the mature decision, and even though it hurts that the stock popped 5% literally hours after I sold, I think selling was still the right decision in the net.
If the price falls again, and IonQ does something that indicates that they may be able to overpower their competitors/Google, I don’t think I would be opposed to re-entering the company.
So now, the question goes from “What do I do with this position?” To “What do I do with 10% of my portfolio as cash?”
I want to get into Japan a bit. I think they have an incredibly undervalued market, and the US is really expensive right now. I think a bunch of Japanese money is going to flood into their market, since for the first time in a while, just holding cash is not a super sound investment. And really, the US is just soooo expensive. I am finding it tough to get opportunities in the US. Here is what I ended up doing.
First, I’ve been looking at MicroStrategy. Just kidding, I would sooner cut off my arm with a rusty saw than invest a penny in a company that does the word abomination justice.
GigaCloud Technology. They’re calling my name again. I chose IonQ over them last time, but GigaCloud is really screaming my name, as they are down 14% since I was last considering purchasing the stock.
GigaCloud is an odd company, and it feels like a trap. This company should be worth more than they are now. GigaCloud was Chinese before becoming an American company based in California three years ago. Their market cap is $900 million, but their revenue last year was $1.1 billion, which feels odd. On this $1.1 billion in revenue, they reaped $300 million in gross profit and $130 million in earnings. They also have zero debt. According to every cash flow model I can find, GigaCloud is between 50%-80% undervalued.
They have a forward P/E ratio below six.
You know what, I just read a rejection letter from Stanford, so I’m done writing for today. I’ll update you guys on my GigaCloud Technology buy later. For now, I will drown my sorrows in, idk, Adventure Time and depression.
