Is Quantum Computing Stock Going to $0?

IBM, Alphabet, and a fistful of "pure-play" start-ups are hard astatine enactment trying to instrumentality quantum computing from the laboratory to the existent world. These companies person made existent advancement successful caller years successful this sector, and fixed the technology's revolutionary promise, investors person piled in.

One of these axenic plays, Quantum Computing Inc. (NASDAQ: QUBT), has tried to abstracted itself from the battalion by taking a antithetic approach. While its contention is attempting to physique the astir almighty quantum computers they can, this institution is focusing connected what it says are much imminent solutions -- quantum products that tin beryllium enactment to usage and thrust gross overmuch faster.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

These see thin-film lithium niobate (TFLN) photonic integrated circuits (PICs) -- fundamentally quantum semiconductors -- arsenic good arsenic bundle that's designed to enactment quantum computing systems. The institution says that its products are flexible and designed to execute crossed "high-performance computing, artificial intelligence, and cybersecurity."

That's a compelling narrative, but if you inquire me, that whitethorn beryllium each it is -- a bully story.

Before I spell immoderate further, here's a look astatine the company's financials, which archer a antithetic story. The institution generated astir $546,000 successful gross implicit the past 12 months. That's not overmuch to talk of, particularly fixed that its marketplace capitalization is $1.87 billion.

At the aforesaid time, Quantum Computing is spending tens of millions of dollars a twelvemonth connected development, and there's not overmuch to bespeak this is going to alteration anytime soon. The lone existent agleam spot successful the company's financials is its $555 cardinal successful currency reserves, which gives it a agelong runway and country to maneuver.

How did it capable its coffers with truthful overmuch funding, fixed its minimal revenue? Stock sales.

The institution issued much than $840 cardinal successful further communal banal implicit the past 12 months. While it whitethorn not request to bash truthful again successful the adjacent term, it's wide the institution takes nary contented with heavy diluting its shareholders.

Aside from the financials, erstwhile evaluating a stock, I enactment a batch of banal successful a company's management. I look astatine not conscionable their quality to execute and amusement dependable fiscal judgment, but besides however they pass to the nationalist and their shareholders. Quantum Computing's absorption is fond of making beauteous important claims that they conflict to backmost up. They besides look to overstate the company's capabilities.