Quantum Computing Inc. (NASDAQ: QUBT), a photonics company focused on developing quantum computing technologies, saw its stock price plummet over 40% on Thursday, December 19. Despite this, the stock has gained an impressive 300% in the past month.
The recent surge in quantum computing stocks has fueled QUBT’s rally, driven by advancements like Google’s Willow chip and Amazon’s Quantum Embark. Additionally, a $2.7 billion government funding for quantum computing bodes well for these stocks.
However, QUBT is still considered a high-risk and high-growth potential story due to its developmental stage and limited revenue. The company reported an operating loss of $25 million in the last twelve months, which may continue to impact its stock price.
Despite this, investors who bet on quantum computing’s future potential, such as those following the High-Quality portfolio, see QUBT as a promising opportunity. With over 1,400% gains this year, QUBT has outperformed some of its peers, including RGTI and QBTS.
A recent contract with NASA for QCi’s Dirac-3 quantum computer may drive investor optimism and potentially open the way to more customers. However, investors should be aware that quantum computing stocks are speculative due to the technology’s years-long developmental stage.
In contrast, the High-Quality portfolio has consistently outperformed the S&P 500 with less volatility, providing better returns with less risk. As a group, HQ Portfolio stocks have provided significant gains over the past six years, outpacing the S&P 500 in most years.
Source: https://www.nasdaq.com/articles/whats-behind-300-rise-qubt-stock