Core Insights - Quantum computing is emerging as a significant investment sector, with two main strategies: investing in legacy tech companies like Alphabet or in pure plays like Rigetti Computing [1][2] Company Analysis - Rigetti Computing has seen its stock price more than triple since the beginning of September, indicating strong market interest and momentum [3] - Recent contract wins for Rigetti include a $5.8 million contract with the Air Force Research Lab and two purchase orders totaling $5.7 million for quantum computing systems, showcasing rising demand and competitive offerings [4][5] - The market has responded positively to Rigetti's announcements, contrasting with Alphabet's relative silence on quantum technology developments since its Willow chip breakthrough last December [6][7]

Core Insights - Tudor Investment Corporation has exited its position in Palantir Technologies and initiated a new position in Rigetti Computing, indicating a strategic shift in investment focus [3][4][14]. Group 1: Palantir Technologies - Palantir has transformed from a government contractor to a profitable AI platform, driving significant enterprise adoption and increasing free cash flow and net income [5][6]. - The company's stock has seen substantial gains, but it now trades at price-to-sales (P/S) and price-to-earnings (P/E) multiples that are disconnected from its fundamentals and SaaS peers [7][9]. - The decision to sell Palantir may reflect a tactical rotation away from a crowded trade, as the easy gains from its AI revaluation may have already been realized [9][14]. Group 2: Rigetti Computing - Rigetti Computing is a speculative investment in quantum computing, a sector projected to potentially evolve into a $10 trillion market [10]. - The company currently generates minimal revenue and has not demonstrated a clear path to commercial viability, which contrasts with the disciplined investment approach typically favored by macro traders [11][16]. - Tudor Investment's position in Rigetti includes both call and put options, suggesting a hedged strategy rather than a straightforward bet on the stock's direction [15]. Group 3: Investment Strategy - The moves made by Tudor Investment reflect a strategy of capital rotation, locking in profits from a mature AI company while reallocating funds to a high-risk, high-reward opportunity in an emerging field [14]. - The potential catalyst for Rigetti's stock could be progress updates on its quantum systems, which may attract institutional capital to the sector [13]. - The overall takeaway emphasizes that even seasoned investors like Paul Tudor Jones adjust their portfolios to optimize risk and reward, suggesting that while trimming overvalued stocks can be prudent, speculative investments should be approached with caution [17].

Core Insights - The stock market's leading quantum computing companies are signaling caution to investors despite their impressive returns [1][2] - The excitement surrounding quantum computing is driven by its potential to revolutionize various industries, similar to the internet [4][5] - Significant insider selling activity raises concerns about the sustainability of current stock valuations in the quantum computing sector [12][15] Industry Overview - Quantum computing is seen as a transformative technology capable of solving complex problems beyond the reach of traditional computers [3] - The economic potential of quantum computing is substantial, with estimates suggesting it could add between $450 billion to $1 trillion in global economic value by 2035 to 2040 [6] Company Performance - Notable quantum computing companies include IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing, Inc., which have experienced dramatic stock price increases [10] - The trailing-12-month price-to-sales ratios for these companies are extraordinarily high, indicating potential overvaluation [16] Insider Activity - Over the past five years, insiders at the four quantum computing companies have sold a net total of $875 million in shares, which is a significant warning sign for investors [12][17] - There has been minimal insider buying across these companies, with Quantum Computing, Inc. reporting no insider purchases at all [15]

We recently published 10 Stocks Crash Harder than Wall Street. IonQ Inc. (NYSE:IONQ) is one of the worst performers on Wednesday. IonQ extended its losses on Wednesday, shedding 6.63 percent to close at $72.41 apiece, as investors continued to unload positions following a $2 billion share sale that resulted in the dilution of existing stocks. Late last week, IonQ Inc. (NYSE:IONQ) announced the successful raising of $2 billion in fresh funds from a share sale program, covering 16.5 million shares at $93 a ...

Core Insights - IonQ is positioned as a stronger investment compared to its quantum peers, with advancements in technology and funding supporting its growth trajectory toward scalable quantum computing [1][3][4] Funding and Acquisitions - IonQ raised $2.0 billion in equity in October 2025, which, while dilutive in the short term, reflects strong institutional confidence and provides capital for commercialization and scaling production [3][7] - The acquisition of Oxford Ionics enhances IonQ's intellectual property in trapped-ion systems, crucial for developing fault-tolerant quantum computing [3][7] Technological Leadership - IonQ's gate-based trapped-ion architecture supports a wider range of quantum algorithms and has shown advancements in gate speed and fidelity, positioning it as a leader in the field [5][6] - The company has made significant progress in quantum chemistry simulation and expanded partnerships in AI and materials research, indicating a shift towards scalable revenue opportunities [3][4] Comparative Performance - IonQ is projected to achieve a 37.8% earnings growth and a 115.1% revenue increase in 2025 compared to 2024, contrasting with Rigetti's expected earnings growth of 75% despite a revenue decline of 19.7% [6][7] - D-Wave Quantum, while showing customer traction, operates on a more specialized architecture that limits its algorithmic flexibility compared to IonQ's offerings [4][6] Valuation Metrics - IonQ's forward 12-month price/sales (P/S) ratio stands at 141.63, significantly higher than the industry average of 4.38, yet lower than its peers Rigetti and D-Wave [10]

Group 1 - D-Wave Quantum's shares fell by 11.5% on Thursday after a significant price surge, closing at an all-time high with a 4,390% increase over the past 52 weeks [1][7] - The recent rise in D-Wave's stock is attributed to substantial capital investments and technological advancements in the quantum computing sector, benefiting the entire industry [3] - D-Wave received an innovation award from Fast Company and completed a large system sale to Swiss Quantum Technology SA, further boosting its stock price [4] Group 2 - Despite the positive developments, D-Wave remains deeply unprofitable, with a stock trading at 628 times trailing sales, making it appear expensive compared to peers like Palantir Technologies and Nvidia [5] - The stock has increased by 533% over the past six months, raising concerns about the sustainability of its valuation amidst the current quantum computing euphoria [6] - Analysts suggest that profit-taking is a natural response to the unsustainable valuation levels, indicating potential for a sharp correction in the future [8]

Core Insights - Rigetti Computing (RGTI) has experienced a remarkable 264% year-to-date increase, indicating potential commercial traction for its technology [1][9] - Key catalysts for this surge include new purchase orders for its 9-qubit Novera systems and a contract with the U.S. Air Force Research Laboratory, suggesting growing demand beyond research [1][9] - Rigetti's advancements in chiplet-based architecture have renewed investor confidence in its scalability and cost efficiency, positioning it as a more competitive player in the quantum computing sector [1] Company Developments - Rigetti is expanding its global presence through collaborations with India's Centre for Development of Advanced Computing (C-DAC) and Montana State University, enhancing its credibility and opportunities in quantum cloud services [2] - Despite the strong momentum, Rigetti's revenue base remains small, and the company continues to face losses, raising questions about its ability to sustain growth [3][9] Peer Updates - IonQ (IONQ) has made strategic acquisitions to enhance its quantum roadmap, improving system scalability and performance while expanding its intellectual property portfolio [4][5] - Arqit Quantum (ARQQ) is focusing on quantum-safe encryption and has joined the Oracle Defense Ecosystem, which strengthens its position in secure networks [6][7] Financial Performance - Rigetti's shares have outperformed the industry, gaining 263.8% compared to the industry's 17% growth [8] - The company currently trades at a price-to-book ratio of 32.88, which is above the industry average, and carries a Value Score of F [11] - The Zacks Consensus Estimate for Rigetti's 2025 earnings suggests a significant 86.1% increase from the previous year [12]

Key Points JPMorgan Chase announced plans to invest $10 billion into companies it believes are imperative to U.S. national economic security. One sector mentioned for potential investment was quantum. 10 stocks we like better than Rigetti Computing › Since the close of trading last week, shares of Rigetti Computing (NASDAQ: RGTI) had risen nearly 10%, as of 11:49 a.m. ET Thursday. The move is being driven by an announcement from JPMorgan Chase earlier in the week. More investment into quantum Quan ...

Core Viewpoint - IonQ announced a substantial $2 billion equity offering, leading to a 6.6% drop in its stock price due to concerns over share dilution [2][3]. Company Overview - IonQ is a quantum computing company valued at $18 billion, with $52 million in revenue, currently trading at $72.41 [8]. - The company provides general-purpose quantum computing systems accessible via major cloud platforms like AWS, Microsoft Azure, and Google Cloud Marketplace [6]. Financial Performance - IonQ reported a 67.8% revenue growth over the last 12 months, but has an operating margin of -700.6% [8]. - The stock is trading at a price-to-sales (P/S) multiple of 347, indicating a high valuation relative to its revenue [8]. Market Reaction - The announcement of the equity offering has led to negative investor sentiment, as the issuance of new shares dilutes existing shares [3]. - Historical data suggests that while price dips may recover, IonQ's stock has shown poor performance compared to the S&P 500 during economic downturns [4]. Stock Performance History - IonQ's stock fell 90% from a high of $31.00 on November 17, 2021, to $3.10 on December 27, 2022, while the S&P 500 experienced a peak-to-trough decline of 25.4% during the same period [10]. - The stock fully recovered to its pre-crisis peak by November 21, 2024, and reached a high of $82.09 on October 13, 2025, before currently trading at $72.41 [10].

Core Viewpoint - Quantum concept stocks have experienced a decline, with several companies showing significant drops in their stock prices [1] Group 1: Stock Performance - Rigetti Computing (RGTI.US) has fallen over 13% [1] - Quantum Computing (QUBT.US) has decreased by more than 4.7% [1] - IonQ Inc (IONQ.US) has dropped over 6% [1] - SEALSQ Corp (LAES.US) has seen a decline of more than 8% [1]