QBTS vs. QUBT vs. IONQ vs. RGTI: Which Quantum Computing Stocks Retail Is Buying After The Sell-Off

• The quantum computing stocks as a group are trading off their peaks seen in early to mid-October.
• Reports of the government’s interest, along with one of the biggest Wall Street firms acknowledging the industry as critical for the nation, provided a boost to the sector before the market pullback.
• Retail traders remain largely skeptical regarding the prospects for SMID-cap quantum names.

The recent market sell-off led by artificial intelligence (AI) names did not spare quantum computing stocks, with most pulling back after peaking in early to mid-October. The Defiance Quantum ETF (QTUM), which is currently up 35% year-to-date (YTD), traded with gains of over 41% in early November. 

With the quantum computing stocks as a group trading off their peaks, we asked Stocktwits users, “Are you buying the dip” on a list of stocks, including D-Wave (QBTS), Rigetti (RGTI), Quantum Computing (QUBT) and IonQ (IONQ).

And the Winner Is….

The results of the poll, which received responses from nearly 8,000 Stocktwits users, showed that a majority (35%) looked to buy the dip in IonQ stock. Rigetti was mentioned by 28% of the users, D-Wave by 23% and Quantum Computing by a more modest 14% users.

The responses posted on the polls timeline, though, showed general trader pessimism about these stocks despite their recent dip.

One user said these stocks are still overvalued. Another user said these SMID-cap quantum names are significantly behind those of IBM (IBM) and Alphabet (GOOGL). The user viewed these big tech companies as clear leaders.

On Stocktwits, retail sentiment toward IonQ remained bullish, although the message volume on the stream was ‘low.’ The sentiment toward D-Wave and Rigetti shares was ‘bearish,’ while retail held a ‘neutral’ view on Quantum Computing.

YTD, D-Wave has outperformed with a gain of over 170%, followed by Rigetti (+62%) and IonQ (+14%). Quantum Computing, on the other hand, is down over 30%.

Source: Koyfin

Quantum — Future Perfect?

Although investors are concerned about whether these companies can quickly scale up to reap the benefits of their investments, industry players remain bullish. In a recent interview with Stocktwits, Infleqtion CEO Matt Kinsella qualified quantum as much more than merely computational devices. Infleqtion is set to go public via a Special Purpose Acquisition Company (SPAC) deal with Churchill Capital Corp. (CCCX).

 “There's a whole umbrella of other types of products, such as quantum sensors, where quantum is already developing products that are truly orders of magnitude better than classical standards,” the executive said.

The run in quantum computing stocks, seen ahead of the market sell-off, was catalyzed by several factors, including rumors that the Trump administration might invest in these companies as part of its focus on critical industries, aiming to reduce reliance on other countries. 

Recently, JPMorgan named quantum computing among the 27 industries it plans to invest in as part of its 10-year strategy to nurture critical sectors for national and economic security.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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