IonQ to acquire Elisity for up to $1.3 billion in stock deal
Summary
Quantum computing company IonQ has announced plans to purchase Elisity in a stock transaction valued at up to $1.3 billion. The acquisition agreement highlights ongoing consolidation and strategic expansion within the technology sector.
Our Take
The selloff makes sense to me. Elisity is being paid for entirely in stock, and at up to $1.3 billion against IonQ's market cap of roughly $13.8 billion, that is close to 10% dilution. That is almost exactly what the stock gave up on Monday: down 9% to $36.27 on about 32 million shares. The market priced in the new shares fast.
What stands out on the chart is the trend: IONQ has dropped in five of its last seven sessions, sliding from about $44 to $36.27 (roughly −17%). The two up days were small bounces that got sold right away, so the trend is still pointing down. I am watching for a relief bounce, but only if support holds.
Key levels for Tuesday:
- Support: $35.89, Monday's low. Losing it opens the door to more downside.
- Resistance: $38.97, just above Monday's high of $38.81.
If $35.89 holds in the premarket and early trading, a rebound toward $38.97 is the setup I would watch. A clean break below $35.89 would tell me the selling is not done yet.
Opinion of Tech & Money Press. Not financial advice.
Source: Read the full story at Stock Market News