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IonQ rises after company releases two technical papers that demonstrate 99.99% two-qubit gate performance

IonQ is up in early trading on Tuesday after the quantum computing company shared two technical papers that demonstrate 99.99% two-qubit gate performance.

According to IonQ’s press release, this marks a new “quantum computing world record” for a two-qubit system, topping the previous world record of 99.97% set last year by Oxford Ionics, which IonQ acquired earlier this year. Though 99.99% and 99.97% sound very similar, the former represents an error rate of 1 in 10,000 operations; the latter represents an error rate of 3 in 10,000 operations.

The company says it is the first and only quantum computing company to cross the “four-nines” benchmark, per the release, putting IonQ on track to scale up toward millions of qubits by 2030.

The “two-qubit gate fidelity,” or the error rate of quantum computers’ two-qubit operations, is an important yardstick to measure the performance of a quantum computer. When accuracy improves, the technology’s window for commercial operations widens — a welcome development in the nascent industry, which has been fueled by increased US government interest and speculative trading as much as it has been by technical breakthroughs this year.

In July, peer Rigetti Computing announced that its two-qubit fidelity was 99.5%, catalyzing its largest one-day gain since January. The two companies both operate gate-based models, but with different approaches: Rigetti uses superconducting circuits, while IonQ, as its name implies, uses trapped ions.

In CEO Niccolo de Masi’s words:

“This level of quantum performance has been the industry’s north star for decades and crossing it brings fault-tolerant quantum systems years closer to mass market adoption. For our global customers, it means unlocking more value from quantum computing sooner, while dramatically lowering the cost and complexity of large-scale systems.”

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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