Quantum Computing and the Market Outlook
IonQ and other quantum computing stocks have been on an upward trend. However, they seem to lack solid fundamental value.
When we look at companies like Remitly and Portillo’s, they are smaller in scale but might actually have more growth potential compared to those quantum stocks.
In fact, both Remitly and Portillo’s could outpace IonQ in the next five years, largely because of their stronger financial performance.
There’s a lot of buzz around quantum computing stocks. IonQ, for example, has seen its stock price skyrocket hundreds of percent over the past year, pushing its market cap to about $25 billion, despite generating less than $100 million in revenue. While quantum computing holds future promise for productivity, IonQ presently appears quite speculative and lacks a clear business model, making it a high-risk investment.
On the other hand, Remitly Global and Portillo’s are focused on creating tangible value today rather than banking on uncertain futures. The argument here is that, in five years, they could very well be larger than IonQ, which makes them preferable additions to your portfolio.
Remitly’s situation is somewhat stark when viewed alongside IonQ. While the money transfer company’s stock is down 42% from its peak in early 2025, IonQ has enjoyed a 78% increase year-to-date, hitting a new all-time high.
Investor worries surrounding Remitly stem from potential immigration restrictions in the U.S. that could reduce cross-border payments, particularly between the U.S. and Latin America—key to Remitly’s business model as a disruptor against traditional services like Western Union. Additionally, there’s chatter about new taxes on remittance payments, though it’s just a 1% tax and unlikely to have a major effect on overall volumes.
Notably, Remitly has shown solid growth throughout 2025. In the last quarter alone, revenue surged by 34% year-over-year, with a 40% increase in sending volume. The company seems unphased by uncertainties regarding remittance trends and is actively gaining market share from traditional players, driven by low fees and a user-friendly mobile app.
Moreover, Remitly is starting to see profits. It brought in $1.46 billion, generating $27 million in earnings before interest and taxes (EBIT), with ample potential for increased operating leverage in the future. In contrast, IonQ is grappling with substantial operating losses and minimal revenue, which makes Remitly appear more deserving of a higher market cap than any quantum computing stock.
Portillo’s, which specializes in Chicago-style street food, has also faced challenges lately. A slowdown in restaurant spending affected some locations in 2024 and 2025, yet the company is strategically expanding into new markets like Texas and Florida, achieving mixed results.
Despite that, Portillo’s outlook seems promising for growth over the coming years. The company plans to enhance its market presence in various states, aiming to introduce this beloved Chicago brand nationwide. Recently, it reported a modest annual sales increase of 3.6%, as many new openings are slated for the latter half of 2025. The goal is to eventually establish around 100 locations by year-end.
Currently, Portillo’s market capitalization is about $464 million. When compared to IonQ, which stands at $25 billion, some might be skeptical about whether this restaurant chain could surpass IonQ in valuation within five years. However, a closer look at their financials reveals a different story.
Over the past year, Portillo’s achieved EBIT of $65 million on revenue of $728 million, whereas IonQ’s revenue was merely $53 million, coupled with a staggering $351 million in losses. While Portillo’s market cap may not reach $25 billion in five years, it has a shot at becoming larger than IonQ, which doesn’t warrant such a lofty valuation.
The bottom line? Investing in Remitly and Portillo’s could be more rewarding than taking a risk on IonQ or other quantum computing stocks. Your portfolio might be quite grateful for the decision in a few years.
