BREAKING: Stock Market Strong Outside AI Sector Something big may be coming to town—check out IBD's guide to the Santa Claus Rally. In the wrong hands, quantum computing could undo cryptocurrency security features. (© Gary Neill) Today's Spotlight IBD's 12 Days of Holiday Deals Celebrate the holidays with big discounts on IBD's premium products every day from Dec. 13-24. Get Market Insights on IBD Live Join IBD Live to watch and discuss the market action in real time with a team of top market analysts. Is t ...

Company Insights - Oracle is facing delays in the completion of data centers for OpenAI, pushing the timeline from 2027 to 2028 due to labor and material shortages, which has negatively impacted Oracle's stock performance [6][11] - Oracle's recent fiscal Q2 earnings did not alleviate concerns regarding its significant investments in AI, leading to a decline in stock value and raising more questions about its strategy [6][11] Market Trends - The Dow Jones and Russell 2000 indices have reached new highs, supported by Federal Reserve actions, while Oracle and Broadcom have negatively affected the technology sector [9] - There is a notable interest in marijuana stocks following reports that Donald Trump may ease federal restrictions, indicating potential market shifts [8]

BREAKING: Stock Market Strong Outside AI Sector Today's Spotlight IBD's 12 Days of Holiday Deals Celebrate the holidays with big discounts on IBD's premium products every day from Dec. 13-24. Get Market Insights on IBD Live Join IBD Live to watch and discuss the market action in real time with a team of top market analysts. Is the Santa Claus Rally Real? Something big may be coming to town—check out IBD's guide to the Santa Claus Rally. Partner Center More News In the wrong hands, quantum computing could un ...

Market Overview - The Dow is up about 100 points, indicating a potential record close after a record yesterday [2][3] - The S&P 500 also closed at a record yesterday but is down about a third today, while the Nasdaq is down about half a percent [3][4] - The S&P equal weight index is outperforming the S&P 500, suggesting broadening participation in the market [4] Federal Reserve Insights - The Federal Reserve cut interest rates by a quarter percentage point, with dissent from three members [8][10] - Chicago Fed President Austin Goulby expressed a desire to wait for more inflation data before further cuts, indicating optimism for significant reductions in rates over the next year [9][10] - Kansas City Fed President Jeff Schmid believes inflation remains too high and the economy shows momentum, suggesting that policy is not overly restrictive [10][11] Technology Sector Performance - Broadcom's disappointing earnings report has significantly impacted the tech sector, contributing to its decline [6][7] - Despite the drop, Broadcom's stock is still up year-to-date due to investor confidence in its AI-related prospects [7] College Athletics and NIL Legislation - The Hustle Act aims to protect college athletes' name, image, and likeness (NIL) earnings by creating tax-advantaged savings accounts and capping agent fees [36] - NIL has become a multi-billion dollar business for college athletes, necessitating legislative measures to provide structure and support [37][38] - The legislation seeks to address the challenges faced by student-athletes in managing their new commercial opportunities while balancing academic commitments [39][41] Corporate Developments - Citigroup received an upgrade to overweight from JP Morgan, citing expected benefits from a solid economy and market activity [60] - Alphabet's price target was raised to $350 by TD Cowan, driven by increased search engagement and the success of its Gemini chatbot [61][62] - FMCC was double upgraded by Wedbush, with expectations of near-term action from the Trump administration to recapitalize the mortgage giant [63] Cryptocurrency Market - Bitcoin is rebounding after dipping below 90,000 earlier in the week, with analysts noting it has been stuck in a range of 85,000 to 95,000 for about a month [64] Electric Vehicle Sector - Rivian's stock is up significantly after NEM raised its price target, citing momentum in AI and autonomous driving [65][66] Banking Sector - UBS shares are rising after Swiss lawmakers proposed easing capital rules, which would lower funding costs for the bank [68]

Group 1: Market Insights - Advanced Buying Strategies Workshop is available for purchase at $395, providing insights into effective investment strategies [1] - IBD Live offers real-time market action discussions with top analysts, enhancing market understanding [2] Group 2: Silver Market Dynamics - Newmont's stock experienced a breakout due to surging silver prices, which reached an all-time high of over $60 per ounce for the first time [6] - Silver futures briefly exceeded $65 before retracting to around $61, indicating volatility in the silver market [6][11] - The recent surge in silver prices has triggered a breakout for several mining stocks, highlighting investment opportunities in this sector [11] Group 3: Broader Market Trends - The Dow Jones signals potential further gains following the holiday, with stocks like ASML and Pan American Silver showing strong buy signals [11] - The dovish outlook from the Federal Reserve has contributed to the rally in silver and other precious metals, impacting related stocks positively [11]

Core Insights - D-Wave Quantum is recognized as a leader in quantum computing systems, software, and services, with its stock value nearly tripling since the start of 2025, despite ongoing losses [1] - The stock experienced a significant increase of about 450% year-to-date until mid-October, followed by a decline of over 39% in just over seven weeks, raising concerns about investor confidence [2] Financial Developments - D-Wave issued an ultimatum to stock warrant holders, allowing them to either exercise warrants at $11.50 or redeem them for $0.01, resulting in 4.7 million warrants exercised and 6.9 million new shares sold, raising $54.6 million [3][4] - The company now has approximately $850 million in cash, sufficient to sustain operations for the next 15 years at a cash burn rate of $55 million per year [4][5] Future Profitability - Analysts project that D-Wave is about five years away from achieving its first GAAP net profit and positive free cash flow, expected in 2030 [5] - The potential for positive free cash flow occurring a decade before a cash crunch suggests a favorable outlook for the stock [6] Stock Issuance Concerns - Despite having enough cash to reach breakeven, D-Wave continues to issue new stock, raising questions about the necessity of further dilution of shareholder value [8][9] - The number of outstanding shares has increased dramatically from about 3 million to over 350 million in the past four years, indicating a substantial cash raise beyond immediate needs [9]

Advanced Buying Strategies Workshop BREAKING: Tech Futures Slide As Broadcom Skids Today's Spotlight Purchase IBD's pre-recorded Advanced Buying Strategies workshop for only $395. Get Market Insights on IBD Live Dow Jones futures and the other major stock indexes traded mixed Friday, as Wall Street faced new artificial intelligence concerns. AI leader Broadcom (AVGO) was one reason why, as shares tumbled after reporting earnings. Meanwhile, retailer Lululemon Athletica (LULU) made big gains on the stock mar ...

ANALYSIS: The Quantum Computing Threat To Bitcoin Today's Spotlight Advanced Buying Strategies Workshop Purchase IBD's pre-recorded Advanced Buying Strategies workshop for only $395. Get Market Insights on IBD Live Join IBD Live to watch and discuss the market action in real time with a team of top market analysts. Is the Santa Claus Rally Real? Something big may be coming to town—check out IBD's guide to the Santa Claus Rally. More News In the wrong hands, quantum computing could undo cryptocurrency securi ...

Core Viewpoint - Quantum Computing Inc. (QCi) is currently not a worthwhile investment despite its significant stock price increase of 526% over the past three years, primarily due to its minimal revenue and high valuation in an unproven market [2][5][12]. Financial Performance - QCi reported only $384,000 in sales for the third quarter, indicating that its revenue is in the hundreds of thousands rather than millions [4]. - The company achieved a net income of $0.01 per share in Q3, a notable improvement from a loss of $0.06 per share in the same quarter last year, but this was largely due to a $9.2 million mark-to-market adjustment of a derivative liability, not a reflection of sustainable financial health [6][7]. - QCi incurred an operating loss of $10.5 million in Q3, highlighting the challenges it faces in achieving sustained profitability [7]. Market Outlook - The practical applications of quantum computing may still be a decade away, as indicated by industry leaders like Google CEO Sundar Pichai, who stated that "practically useful" quantum computers are still five to ten years from realization [9][10]. - The quantum computing market remains unproven, and even major players express skepticism about the near-term viability of the technology [9][10]. Valuation Concerns - QCi's price-to-sales (P/S) ratio stands at an astonishing 3,200, significantly higher than the tech sector average of 9 and even higher than other quantum computing stocks like IonQ, which has a P/S ratio of 163 [11]. - This extreme valuation suggests that investors are overpaying for a company with negligible revenue and high expenditures in a developing market [12].

Group 1 - The article discusses the challenges in quantum computing regarding narratives and valuations, making it difficult to identify absolute valuation-fundamentals gaps and time entries [1] - QTUM is favored as it reduces idiosyncratic risks within traded quantum stocks, indicating a strategic choice in investment [1] - The author has extensive experience in quantitative research, financial modeling, and risk management, focusing on equity valuation, market trends, and portfolio optimization [1] Group 2 - The research approach combines rigorous risk management with a long-term perspective on value creation, emphasizing macroeconomic trends, corporate earnings, and financial statement analysis [1] - The goal is to provide actionable ideas for investors seeking to outperform the market, highlighting a commitment to delivering high-quality, data-driven insights [1]