Quantum Computing Inc. (QUBT) develops novel algorithms and solutions that utilize quantum and quantum-inspired computing to solve complex problems in various industries. Its share price has been on a wild ride on the stock market, experiencing wild swings. Despite the company’s exciting technological potential, savvy investors are hitting the brakes. With no meaningful income to show and no concrete forecast for commercialized quantum computing on the cards, the survival prospects for this innovative quantum company don’t look particularly promising. After tremendous 2024, QUBT stock has declined since the beginning of 2025, shedding 50% of its value.
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If you wish to read more about QUBT, I recommend reading what our analyst at Tiptanks, James Fox, has written about the company.
Now, let’s look at four glaring issues that make QUBT a risky bet right now.
Sky-High Valuation with Little Substance
QUBT’s stock price has skyrocketed in 2024, but the underlying numbers are sobering. The company boasts an overwhelming price-to-sales ratio of over 2,000x, yet its revenue is minimal. This valuation seems more like a fantasy than reality. For instance, competitors like IonQ (IONQ) trade much lower multiples despite securing larger contracts. Even in the booming quantum market, QUBT’s inflated price tag is hard to justify, making it a risky outlier in the sector.
Struggling to Generate Real Revenue
Despite bold claims and cutting-edge technology, QUBT’s earnings are nearly nonexistent. In a recent quarter, the company reported just $101,000 in revenue, a tiny figure for a billion-dollar company. Meanwhile, losses continue to mount, and analysts predict cash bleeding. Compared to peers like IonQ and Rigetti (RGTI), which have secured larger contracts and more robust pipelines, QUBT’s progress appears sluggish.
Fierce Competition from Tech Giants
The quantum computing race is packed with heavyweights like Google (GOOGL), IBM (IBM), and Microsoft ($MSFT, companies with deep pockets and decades of research. While QUBT differentiates itself with photonics-based quantum LiDAR and an entropy-driven architecture, it faces an uphill battle. Unlike its competitors, which concentrate on increasing qubits and offering cloud quantum services, QUBT’s specialized approach might reduce its attractiveness in larger markets. With major companies leading the industry and gaining market share, QUBT risks being overlooked despite its niche focus.
Risky Hype and Market Volatility
QUBT’s meteoric rise of over 1,400% in six months smells of FOMO-fueled hype. But history warns us: remember the dot-com bubble, where countless high-flying tech stocks crashed spectacularly when excitement outpaced earnings. Analysts caution that QUBT’s wild swings are more about buzz than business fundamentals, making it a dangerous ride for risk-averse investors.
No Price Target Has Been Issued
Currently, Wall Street analysts do not have ratings or price targets for QUBT. However, the following chart examines which quantum stocks are doing well and which are struggling.
The Bottom Line
QUBT may have a bright vision for quantum computing, but its stock feels like a gamble. While the company embraces a unique approach like photonics-based LiDAR, its path to standing against tech titans remains unclear. Historical busts like the dot-com crash remind investors how hype can implode without substance. Still, should QUBT achieve a breakthrough or attract acquisition interest, the narrative could shift, but for now, caution reigns.
