QUBT, QBTS, IONQ, RGTI Stocks Spark Retail Buzz On Stocktwits As Valuation Concerns Emerge

Quantum stocks, including Quantum Computing Inc. (QUBT), D-Wave Quantum Inc. (QBTS), IonQ Inc. (IONQ), and Rigetti Computing Inc. (RGTI), are drawing significant retail investor interest in Thursday’s premarket session as concerns about their high valuations emerge. 

Advancements in both quantum hardware and software, along with efforts to build more powerful quantum machines, are sparking excitement among retail investors and market watchers in the quantum computing sector.

According to a Barron's report, the recent surge in stock prices for companies in the sector is raising concerns about irrational valuations and a potential bubble in the making.

The report cited Bank of America, which likens the disruptive potential of quantum technology to fire or electricity, noting its ability to revolutionize everything from pharmaceuticals to logistics. However, for now, the sector’s commercial viability remains far from reality, even as valuations skyrocket, it added. 

The report stated that the four most prominent quantum-focused companies, Quantum Computing, D-Wave Quantum, Rigetti, and IonQ, have seen their stock prices nearly quadruple in the past year despite limited revenue generation and persistent profitability concerns.

On Stocktwits, QUBT, QBTS, RGTI, and IONQ have experienced surges of 602%, 257%, 518%, and 245% in user message counts over the past week, respectively. 

According to the report, these four companies cumulatively reported around $26 million in sales during the latest quarter, yet collectively boast a market capitalization of nearly $55 billion.

As enthusiasm continues to outpace earnings, parallels to historic bubbles, from dot-com stocks to tulip mania, grow increasingly relevant. Quantum computers still face major problems, as per the report. They use tiny particles, such as trapped ions and photons, which act as the building blocks of data, known as qubits, that are delicate particles prone to interference.

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