Stock Reveal: Luke Lango’s “Area 52” Stock Pitch

Hey, what's going on with everyone?

Luke Lango is out with a new stock teaser, and this time he's hyping up what he calls "Area 52."

He claims this stock will be in a "quadrillion-dollar" industry.

Luke even claims this is the hottest stock to own before March 27th, 2023.

However, Lango won't reveal the name of the stock unless you buy his newsletter.

Well, I have good news!

He left enough clues in the presentation to figure out the company.

I reveal it below along with a bunch of other information to help you decide if it's a good investment.

Let's get started!

Breaking Down Area 52 Presentation

The Area 52 stock presentation is long, like most stock presentations.

Here are some FAQs about the pitch so you can better understand it:

1) What is the theme of the presentation?

This stock pitch starts off like so many others.

There are big promises and a lot of hyperbole.

Luke claims that in a 52-mile stretch near Chicago (this is why the presentation is headlined with "Area 52"), there's a new "godlike super technology" undergoing government tests.

He claims scientists are calling it "holy grail" technology, "Garden of Eden," and "transformative to our entire life."

Luke goes as far as to say the technology is on par with the discoveries of "fire, the wheel, the internet, and flight."

So what is this magical technology called?

Quantum technology.

Apparently Chicago area scientists are working on an "unhackable quantum internet" in their basement closet.

2) What Is Quantum Technology?

Quantum technology is not an easy thing to understand or explain.

I am in no way, shape, or form an expert on this topic, and I can't imagine many people are.

If you really want to try and understand quantum computing, here's a video that covers it in pretty basic terms:

So there's a rule to investing that I take very seriously.

If you can't draw what a company does with crayons, then you probably shouldn't be investing in it.

What quantum computing is aiming for is pretty easy to understand.

It's going to increase computing power and allow computers to solve more complex problems.

This is supposedly to help scientists discover new medicines, improve encryption to prevent hacks, and things of that nature.

But I couldn't really draw or easily explain how quantum computing is going to do this.

It's literally a quantum mechanism that has to do with electrons and subatomic particles.

So maybe this technology will be on par with fire and flight, but I have no clue how it works.

And if I can't understand how something works, it's hard to analyze a company that utilizes the technology.

How can I understand if a company has a legitimate product to sell if I can't even describe what the product does?

Something to keep in mind

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4) How long until quantum computing is a thing?

Another issue I have with investing in quantum computing is that the technology is still far from being prevalent.

This idea is still very much in its early stages, and much of it is very theoretical.

Apparently, quantum computers have very high error rates.

A couple weeks ago, Google claimed they had passed a major milestone by reducing error rates, but it took them DECADES to figure out how.

Apparently, the system to correct errors created by quantum computing was first theorized in the 1990s, but it just caused more errors.

Decades later, Google finally developed a code that could fix the errors.

One of the lead scientists said the error rate is still too high and the system needs to be improved.

No one knows for sure when quantum computing will be prevalent, commercial, and useful.

Most estimates have it anywhere from 5 to 20 years.

Google is apparently shooting for 2029.

So that's how long you might have to wait to see an investment in this technology pay off.

5) What company is Luke Lango recommending?

There are not a lot of pure-play quantum computing stocks out there.

Many large companies like Google, IBM, and Microsoft are all developing quantum computing technology.

A lot of the quantum computing startups have really struggled after getting investments from Wall Street.

And because of this, Wall Street has stopped investing in these kinds of companies at the moment.

The main pure-play quantum computing stock picks are Rigetti, D-Wave Quantum, and IonQ.

These all went public recently through SPAC deals, and all are down HUGE from their peaks (80% to 90% down).

Some hints Luke drops about the mystery company are:

• makes chips for quantum computers
• 0.08% of the size of Amazon
• $13.4 million contract with the US Air Force Research Lab

That's enough clues to figure it out.

The company being pitched here is IonQ, and here you can see a press release detailing the $13.4 million deal with Air Force.

So this is definitely the company that Luke is pitching.

Is it worth investing in? 

We'll get into that next.

6) Is IonQ a good investment?

Luke is pretty dramatic in this presentation.

So if you're looking for a hyper-positive outlook at IonQ, just go through the presentation again.

He believes that through government contracts, IonQ's revenue can jump over 7,900% from $25,000,000 to over $2,000,000.

That $2 billion figure has to do with a deal Amazon signed with the NSA, and Luke claims $2 billion would be 1/5th the size.

Let's go over the pros and cons of this company, starting with the pros:

Pros:

First, the company is the best-positioned pure-play quantum computing stock.

Others have apparently been completely written off by investors, and the companies are expected to survive.

IonQ still has cash to survive, and apparently their products are cheaper to make than their competitors.

Quantum computing is in a lull right now, but new splashy headlines could get investors excited again.

I'm sure the recent developments at Google brought in new investments.

Because they're the best pure-play quantum computer company, they'll get plenty of people buying the stock early.

Additionally, IonQ has partnerships with Amazon Web Services and Microsoft.

So that indicates some confidence in the products IonQ is selling.

Cons: 

There are a lot of drawbacks to an investment like this.

Mainly, the technology is YEARS away from being commercialized.

The most optimistic prediction is 5 years, and more realistic predictions are 10 to 15 years.. or maybe never!

This is very theoretical stuff, which means it's not concrete.

There are many cool-sounding technologies that come and go without ever making a real dent in the world.

Quantum computing might never materialize into anything significant.

And because the technology is so far from being useful, you can't really predict where quantum computing is going.

The industry might go in a different direction than IonQ is anticipating, which would make their products useless.

A bet on IonQ is essentially a bet on quantum computing.

I personally am not comfortable investing in quantum computing at the moment.

7) Is Luke Lango legit?

The whole point of this presentation is to sell Luke's newsletter, Innovation Investor.

I wrote a very long review of this service a month ago.

Here's my summary of the newsletter:

"Innovation Investor has some things to like about it, but I think the bad outweighs the good.

There are way too many stocks in the portfolio (up to 60), and many are way too risky to be investing in.

There are some impressive winners but also massive losers (plenty of 80% and 90% losers).

Additionally, there are stocks that are straight-up pump and dumps and other fraudulent companies that are being recommended.

The term "innovation investor" comes with a lot of baggage, and a convicted fraudster runs the publisher distributing the newsletter.

"I personally wouldn't recommend buying this service."

I've covered a lot of Luke's stock picks on this website, and they've basically all done really badly.

The market we're in has been brutal for these hypergrowth stocks Luke likes to recommend.

People like investing in safe bets right now, not the latest technology that's 5 years from being commercialized.

So I don't think now is the right time to be following Luke.

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Wrapping Things Up

So that's the end of my post covering Luke Lango's "Area 52" stock presentation.

The presentation is about quantum computing, and the company being pitched is IonQ.

I personally am not interested in investing in this stock.

There are just way too many unknowns for me.

It's not even clear whether quantum computing will turn into anything significant.

Maybe it will, and maybe IonQ will deliver like Luke believes it will.

But I'm content to hold off for now and see how things turn out.

When the picture becomes more clear, I can always invest down the road.

What about you?

Do you like the idea of quantum computing, and are you interested in IonQ?