The investment world is currently witnessing a stark contrast between highly speculative technology ventures and established businesses with tangible growth. Quantum computing companies, exemplified by IonQ, are experiencing significant market enthusiasm, yet their financial fundamentals often lag behind their lofty valuations. This piece highlights the disparity, arguing that a more grounded approach to investment, focusing on companies demonstrating consistent revenue and profit, such as Remitly Global and Portillo's, offers a more secure and potentially more rewarding path for investors.
IonQ, a prominent name in the quantum computing sector, has seen its stock price surge, leading to a market capitalization of $25 billion despite reporting less than $100 million in revenue. This valuation suggests a strong belief in the future potential of quantum computing, a field that could revolutionize various industries by dramatically increasing computational power. However, as of late 2025, IonQ remains a highly speculative entity, characterized by minimal revenue generation and ongoing operational losses. This situation presents considerable risk for investors, as the company's valuation is primarily based on future technological breakthroughs and market adoption rather than current financial performance or a robust business model.
In stark contrast, companies like Remitly Global and Portillo's, operating in more traditional sectors, offer a clearer and more immediate path to value creation. Remitly Global, a digital remittance service, has faced investor apprehension due to concerns about immigration policies and new taxes on cross-border payments. Despite these headwinds, Remitly has demonstrated strong growth, with a 34% year-over-year increase in revenue and a 40% rise in send volume in the most recent quarter. The company is actively disrupting legacy players like Western Union with its low fees and user-friendly mobile application, and critically, it is moving towards profitability, reporting $27 million in earnings before interest and taxes (EBIT) on $1.46 billion in trailing revenue. This financial health positions Remitly as a company with a strong operational foundation and significant potential for continued growth, irrespective of the speculative nature of emerging technologies.
Similarly, Portillo's, a popular restaurant chain specializing in Chicago-style street food, is pursuing a strategic expansion into new markets such as Texas and Florida. While it experienced a modest 3.6% annual revenue growth last quarter, primarily due to the timing of new store openings, the company has substantial long-term growth prospects. With just around 100 locations planned by the end of 2025, there is ample opportunity for Portillo's to expand its footprint across metropolitan areas in the United States. Despite a smaller market capitalization of $464 million compared to IonQ's $25 billion, Portillo's generated $65 million in EBIT on $728 million in revenue over the last 12 months. This demonstrates a solid, profitable business model that stands in stark contrast to IonQ's financial performance, which has consistently shown losses and significantly lower revenue figures. The tangible assets, established customer base, and clear expansion strategy of Portillo's offer a more grounded investment opportunity.
The current market trend showcases a significant divergence between the high-flying valuations of unproven technological concepts and the steady, demonstrable progress of companies built on sound financial principles. While quantum computing may one day transform industries, the present financial realities indicate that investing in businesses like Remitly and Portillo's, with their proven track records of revenue growth and profitability, is a more prudent strategy than chasing the speculative allure of quantum computing stocks like IonQ.
