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So far, it has been a tough year for investors. As of the market closure on June 5th, S&P 500 and Nasdaq Composite Each index has a break-even point for the year. This makes making money in the stock market very difficult, but there were some pockets that helped investors to do well if they chose to engage in more volatility than usual.
Now you may have come across a new acronym that pops up around financial circles called “taco” trading. Below we’ll go into detail what this means and why it’s important.
From there we dig into quantum computing, one of the new hot areas that fuel the story of artificial intelligence (AI).
Is quantum computing inventory a good way to play Thakostrate? Please read to find out.
The S&P 500 and Nasdaq are both flat annually, but the image below shows that there have been some notable dips and sharp rises in both indexes throughout 2025.
The term “Taco Trade” is a cheeky acronym that symbolizes “Trump Always Chickens Out.” Essentially, whenever the president expressed some harsh rhetoric about his new tariff policy, the market plummeted. But then, the market screams once more as he eases some of the pressure on the topic of tariffs.
In summary, Taco Trade is simply a new version Buy a dip When the stock price drops abnormally.
Image source: Getty Images.
Two of the most popular quantum computing stocks in the market today are Aeon Q(NYSE: IONQ) and Computing is denied(NASDAQ: Lint). In 2024, IONQ shares rose 237%, while Rigetti shares climbed to the jaw dropping 1,450%. Both had total control over the broader market.
But this year was a different story. As of the closure bell on June 5th, shares in IONQ and Rigetti Computing had plummeted 12% and 28% respectively.
Given these declines, is this a good opportunity to buy quantum computing stock now?
To answer that question, smart investors understand that valuations need to be considered. Following the chart below, Rigetti Computing and IonQ boast Sell from price (P/S) A ratio that appears to be inconsistent with the fundamental fundamentals of the company.
Looking at another approach, IONQ and Rigetti Computing have generated a combined revenue of around $50 million over the past 12 months.
Given nominal sales and bleeding losses, it is difficult to justify the valuation doubles depicted above.
Rigetti and IonQ each have monster running in terms of stock prices, but both of these companies appear to be appearing in bullish quantum computing stories. In other words, their trading levels are not rooted in the actual performance of the business, but rather in a broader macro perspective that quantum computing could be a good opportunity in the long run.
The big point here is that despite the shares in IONQ and Rigetti are down annually, their respective valuations make it clear that neither of these companies are good “DIP” candidates. Rather, each stock remains overvalued, even when performance is low throughout the year.
For these reasons, we will not chase after the sale of these quantum computing stocks as TACO trade continues to evolve. My doubt is that both IONQ and Rigetti will experience continuous valuation compression, and its stock price could continue to spiral down very well.
Consider this before purchasing stock at IONQ.
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Adam Spatacco There is no position in any of the stocks mentioned. Motley’s fools have no position in any of the stocks mentioned. To Motley’s fool Disclosure Policy.
