Why Shares of Quantum Computing Stocks D-Wave Quantum, Quantum Computing, and Rigetti Computing Were Plunging Again Today

Stock Performance - D-Wave Quantum was down 31 4% Quantum Computing down 24 7% and Rigetti Computing down 25 5% as of 11 16 a m ET [1] - Quantum computing stocks like D-Wave Quantum (QBTS -30 65%) Quantum Computing (QUBT -23 77%) and Rigetti Computing (RGTI -28 33%) tumbled again on Monday for the second time in just three sessions [6] Company Financials - Quantum Computing has less than $1 million in revenue over the last four quarters [2] - Rigetti Computing is the largest of the three with nearly$12 million in trailing revenue over the last four quarters [3] - D-Wave announced fiscal 2024 bookings would top $23 million up 120$18 million up 500% from the quarter a year ago [5] - D-Wave filed for a stock sale plan allowing it to sell up to $150 million in stock [7] Industry Sentiment - Meta Platforms CEO Mark Zuckerberg expressed skepticism about quantum computing stating it is still quite a ways off from being a very useful paradigm [4] - Nvidia CEO Jensen Huang previously stated quantum computing technology was 15 to 30 years away from being very useful [6] - D-Wave CEO Alan Baratz countered the skepticism stating that some quantum computing solutions are maturing faster than others and D-Wave's annealing quantum computing solutions are currently available and solving real problems [5] Market Valuation - Quantum computing stocks still trade at a valuation of over$1 billion making them very expensive for development-stage companies [9] - The sector looks overvalued after last month's surge despite D-Wave's encouraging financial update [9] Investor Behavior - Speculative investors could take a small position in D-Wave or its peers but competition from Alphabet means success in quantum computing doesn't guarantee success for these stocks [8] - Tech stocks fell broadly in what seemed to be risk-off behavior as bets on Federal Reserve rate cuts declined after a strong jobs report last Friday [6]