Stock-Split Watch: Is Quantum Computing Next?

Core Insights - Quantum Computing stocks have seen significant interest and price increases in 2024 and 2025, with Quantum Computing (QCi) experiencing over 2,800% gains in one year as of October 1 [1] - QCi's market capitalization has grown from approximately $60 million to nearly $3 billion, raising speculation about a potential stock split [2] Stock Split Mechanism - A stock split involves increasing or decreasing the number of outstanding shares, which alters the share price but does not change the company's underlying value [3] - Companies can perform forward splits, which increase the number of shares and lower the share price, or reverse splits, which decrease the number of shares and raise the share price [4][5] - Forward splits are generally seen as positive, while reverse splits are often viewed negatively, as they are typically used to boost share prices and avoid delisting [6] QCi's Stock Split History - QCi has previously executed two reverse splits, in August 2007 (1-for-100) and July 2018 (1-for-200), but has not conducted a forward split [7] - Recently, QCi raised $500 million through a private placement, selling 26.9 million shares, which increases the number of shares in circulation and can lead to share dilution [8] Financial Performance - QCi's revenue is significantly lower than its peers, with only $263,000 in trailing twelve months revenue, and just $100,000 in the first half of 2025, down from $210,000 in the first half of 2024 [12][14] - The company operates at a loss, which is common in the emerging quantum computing sector, but QCi's minimal revenue raises concerns about its financial viability [14] Future Outlook - A future stock split for QCi could occur if the share price rises significantly or if it risks delisting due to a price drop, but the likelihood of a forward split is considered optimistic [10][11] - The main competitive advantage for QCi lies in its photonics technology, which allows quantum systems to operate at room temperature, although competitors like IonQ also offer similar capabilities [11]