If you enjoyed this, consider Ian's Insider Corner to enjoy access to similar initiation reports for all the new stocks that we buy. Membership also includes an active chat room, weekly updates, and my responses to your questions.Quantum computing stocks have been one of this year's hottest investing themes. Traders have gravitated to companies like IonQ ( IONQ ) and Rigetti Computing ( RGTI ) which appear to be at the forefrontIan Bezek is a former hedge fund analyst at Kerrisdale Capital. He has spent the ...

Quantum Computing ( QUBT ) delivered very promising Q3 earnings. Revenue and EPS are still too small to pay much attention to. Since QUBT is my long-term bet on the quantum future, I invested my time more in whatComing from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and now I feel very confident ...

Group 1 - Quantum computing technology is in its early stages, with many companies going public but facing high risks due to limited revenue and lack of diversified business lines [1][2] - Funding for research and development in quantum computing often comes from research institutions, debt sales, or issuing new shares, which can dilute existing shareholders [2] - High-risk investments in quantum computing may yield significant returns if successful, but this investment style may not suit all investors [2] Group 2 - Established tech companies, such as Alphabet, are preferred for investment as they are also developing quantum computing technology while having robust existing businesses [3] - Alphabet's primary revenue source is its advertising business, which continues to grow, with Google Search and YouTube ad revenues increasing by 15% year over year [5][6] - Google Cloud is a significant profit center for Alphabet, with a revenue increase of 34% and an improvement in operating margin from 17% to 23%, indicating strong demand for cloud computing [6] Group 3 - Quantum computing is crucial for Alphabet's cloud computing ambitions, as it seeks to enhance its capabilities beyond relying solely on third-party hardware like Nvidia's GPUs [7] - Alphabet has developed its own tensor processing units (TPUs) for AI workloads, which are more efficient and cost-effective compared to general-purpose GPUs [7] - The profits from Alphabet's established businesses can support its quantum computing initiatives, with its Willow quantum computing chip showing a verifiable advantage over classical computers [8]

Core Insights - Investing in quantum computing presents significant opportunities, with IonQ and Alphabet being highlighted as two potential stocks for investors [1] Group 1: IonQ - IonQ is identified as a high-risk, high-reward investment in quantum computing, with a current market cap of approximately $18 billion [3] - The company utilizes a trapped-ion quantum computing approach, which offers advantages such as faster processing, fewer errors, smaller devices, and lower energy requirements [4][5] - IonQ aims to support 100 to 256+ physical qubits by the end of next year and plans to deploy quantum computers with 2 million physical qubits by 2030 [6] - In addition to quantum computing, IonQ is also developing quantum networking, sensing, and security solutions, positioning itself as a unique player in the market [7] Group 2: Alphabet - Alphabet, the parent company of Google, is presented as a safer investment option in the quantum computing sector [8] - The Google Quantum AI unit has achieved significant milestones, including a computation that would have taken the best supercomputers 10,000 years to complete, accomplished in just 200 seconds [9] - Alphabet's advancements in reducing errors through increased qubit numbers further solidify its position in the quantum computing landscape [9]

Core Insights - Quantum computing is emerging as a significant tech trend following the AI race, but it remains unproven with ongoing competition among major tech firms [1] - Amazon has divested its entire stake in IonQ, raising questions about the future of quantum computing investments [2] Company Analysis - Amazon owned 854,207 shares of IonQ at the end of Q2, valued at approximately $36.7 million, which is minor compared to its other investments like Rivian Automotive worth nearly $2.2 billion [3] - The divestment may indicate Amazon's strategy to streamline its portfolio, especially after a strong performance of quantum computing stocks in Q3 [4] - Amazon's expertise in cloud computing positions it to have insights into the quantum computing landscape, suggesting that its decision to sell IonQ shares could signal knowledge that individual investors may lack [5]

🔥 ADAM BACK: “Probably not for 20 to 40 years. Bitcoin can be quantum ready long before cryptographically relevant quantum computers arrive.”The Bitcoin pioneer on BTC quantum risks. https://t.co/wblzSbRTEk ...

Rigetti Computing has crashed in recent weeks.If you look at 2025 as a whole, Rigetti Computing (RGTI +1.11%) investors have had a great year, as the stock has essentially doubled. However, after setting an all-time high in early October, the stock now sits about 50% off that level.That's a huge crash in just a few weeks, but is this sell-off warranted, or is this a fantastic opportunity to buy a hot quantum computing stock on the dip? Let's take a look at Rigetti Computing's stock and see if there's a salv ...

Group 1 - Quantum computing concept stocks in the US saw a significant pre-market surge on November 17, with QUBT rising over 22% after its earnings report [1] - QBTS experienced an increase of over 4%, while IONQ and RGTI both rose nearly 3% [1]

Group 1: Quantum Computing Inc. Performance - Quantum Computing Inc. reported better-than-expected third-quarter financial results, with earnings of 1 cent per share compared to market estimates of a loss of 6 cents per share [1] - The company's quarterly sales reached $384,000, significantly exceeding expectations of $116,667 [1] - Following the positive earnings report, Quantum Computing shares surged 23.5% to $13.09 in pre-market trading [1] Group 2: Other Notable Stock Movements - WeShop Holdings Limited experienced a significant increase of 98.6%, reaching $60.00 in pre-market trading after gaining over 50% on the previous Friday [4] - MSP Recovery, Inc. rose by 38.6% to $0.6230 in pre-market trading after a 5% decline on Friday [4] - Genius Group Limited's shares increased by 36.7% to $1.18, following the filing of a Federal Securities Class Action Lawsuit against Citadel Securities and Virtu Financial for alleged market manipulation [4] - Repare Therapeutics Inc. saw a surge of 27.8% to $2.11 after reporting upbeat third-quarter results [4] - Twin Vee Powercats Co. rose 22.3% to $2.15 after a 5% drop on Friday [4] - Orangekloud Technology Inc. gained 18% to $1.29 after a decline of around 6% on Friday [4] - Dragonfly Energy Holdings Corp. increased by 17.6% to $0.9528 after posting a narrower-than-expected quarterly loss [4] - Sigma Lithium Corporation's shares rose 14.8% to $6.96, with an EPS loss of 10 cents compared to a loss of 23 cents in the prior year quarter [4] - Clearwater Analytics Holdings, Inc. gained 14.6% to $22.07 following reports of acquisition talks involving Warburg Pincus and Permira [4]

Core Insights - The rapid rise of quantum computing stocks has faced a significant slowdown, with concerns about their sustainability and future performance [1][3]. Stock Performance - Over the past year, quantum computing stocks such as IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have seen remarkable gains of 97%, 1,590%, 1,420%, and 627% respectively, leading to substantial returns for early investors [2]. - Despite these gains, recent operating results indicate that these stocks may be overvalued, with significant pullbacks expected [3][18]. Revenue and Market Capitalization - IonQ reported $39.9 million in revenue for the September quarter, a 222% increase year-over-year, but this revenue does not justify its market cap, which has decreased to $16.1 billion [11]. - Rigetti Computing's revenue fell to $1.9 million, down from nearly $2.4 million the previous year, highlighting its struggles despite a previous market cap exceeding $15 billion [12]. - D-Wave Quantum achieved approximately $3.7 million in sales, a 100% increase from the prior year, but its annual sales run rate of $15 million is insufficient compared to its market cap of almost $14 billion [13]. Valuation Metrics - The price-to-sales (P/S) ratio for quantum computing stocks is currently in unsustainable territory, with IonQ at 141, Rigetti at 967, D-Wave at 282, and Quantum Computing Inc. at 4,729 [19]. - Historical trends suggest that premium valuations are not sustainable over long periods, as seen in past technology bubbles [16][17]. Future Outlook - The Boston Consulting Group estimates that quantum computing could generate between $450 billion and $850 billion in global economic value by 2040, while The Quantum Insider predicts $1 trillion by 2035 [7]. - Partnerships with major tech companies like Amazon and Microsoft are enhancing the visibility and potential of quantum computing, but the recent disappointing financial results may dampen investor enthusiasm [8][10].