Quantum Stocks Bleed Out — Rigetti, D-Wave Down More Than 30%

Core Insights - The quantum computing sector experienced a significant downturn in November, leading to substantial losses for companies like IonQ, Rigetti, D-Wave, and Quantum Computing Inc. [1][2] Group 1: Market Performance - IonQ's stock fell approximately 25% from its October high, despite reporting triple-digit revenue growth [3] - Rigetti's stock declined around 40% from its early November price [3] - D-Wave's stock dropped by more than 30% during the month, while Quantum Computing Inc. fell over 25% [3] Group 2: Fundamental Challenges - Quantum computing companies operate with minimal revenue and report significant net losses, creating an unsustainable gap between high market capitalizations and actual business fundamentals [4] - Price-to-Sales (P/S) ratios for these companies are significantly above healthy market averages, indicating overvaluation [4] Group 3: Financial Pressures - Companies in the sector have aggressively raised capital to support high cash-burn rates, with IonQ completing a large equity offering [4] - Concerns about equity dilution arose as Quantum Computing Inc. faced pressure from plans to offload shares [4] Group 4: Market Sentiment - The quantum stocks are highly sensitive to broader market shifts, with a decline in enthusiasm for high-growth, unprofitable tech stocks leading to capital rotation away from quantum names [4]