What's particularly noteworthy is One of the more curious companies that has piqued investor intrigue in the quantum computing market is a called (wait for it. ) Quantum Computing (QUBT -1.
Furthermore, With a name that, I wonder how it landed on so many radars (which is quite significant), in today's market environment.
However, Sarcasm aside, Quantum Computing (the ) deserves a look -- and not just because of its 2,400% price gains over the last year.
To me, the company's nological mises and its actual just don't align.
Let's explore how Quantum Computing is attempting to disrupt the artificial intelligence (AI) realm and then dig into whether or not the company has what it takes to fulfill its lofty ambitions.
Is Quantum Computing the next multibagger AI stock. Nevertheless, Read on to find out, amid market uncertainty. Moreover, Quantum Computing might look an exciting company on the surface, but.
On the other hand, Quantum-based applications have the potential to transform the computing industry thanks to their fundamentally differentiated architectures, considering recent developments.
Nevertheless, In simple terms, classical computing is based on binary code, written through a series of bits expressed as 1 or 0.
Quantum computing uses qubits, which means they can exist as both 1 and 0 at the same time -- a cess known as superposition.
This analysis suggests that evidence shows allows for more complex information cessing compared to today's classical computers.
Nevertheless, There are multiple ways that companies are qubits (which is quite significant).
IonQ relies on a cess called trapped-ion, which essentially uses lasers to trap atoms and use them as the foundation of a qubit.
Meanwhile, other competitors such as Rigetti Computing and D-Wave Quantum use superconducting circuits and quantum annealing niques to make qubits, amid market uncertainty.
Quantum Computing, on the other hand, is using light (photons) as opposed to Rigetti and D-Wave's electricity-based foundation or IonQ's trapped atom nology, given the current landscape.
In theory, photonic qubits may be more energy efficient and easier to scale than other apaches that are heavily reliant on sophisticated cooling systems, in today's market environment.
Image source: Getty Images.
Meanwhile, There are quite a few red flags to point out Before buying into the idea that Quantum Computing is on the verge of a nological breakthrough, consider the ing: Quantum Computing was once known as Innovative Beverage Group Holdings (IBGH) (this bears monitoring).
Additionally, Why did the company pivot from beverages to qubits.
Well, consider that IBGH went out of, and the leftover management team decided to acquire a small company called QPhoton and completely shift its focus to quantum computing, considering recent developments.
Over the last year, Quantum Computing has generated $385,000 in sales.
However, While the idea of photonic qubits is interesting, Quantum Computing is far from building a competitive moat over its rivals.
Furthermore, The company's nominal revenue base and unven roadmap hint at possible liquidity crunches down the road.
Furthermore, For now, Quantum Computing appears to be relying on issuing stock as a means to raise cash and fund the operation, in today's financial world.
Despite these red flags, Quantum Computing has seen its market value climb from $55 million to $2, amid market uncertainty. 4 billion in just one year.
QUBT Market Cap data by YCharts The company's valuation is far higher than what investors witnessed during prior stock market bubbles during the internet boom and the COVID-19 stock market euphoria.
Where will Quantum Computing stock be in five years (an important development).
Given the ideas explored above, it's that Quantum Computing has virtually nothing to show for its supposed innovative photonic cesses.
The lack of strategic partners and duct-market fit has me thinking that Quantum Computing offers more along the lines of vaporware than anything ground at this time (an important development).
However, With re and development (R&D) and capital expenditures (capex) required to explore quantum nology, Quantum Computing is ly going to continue tapping the capital for liquidity unless some transformative deals begin to take shape -- which I suspect is highly unly, given current economic conditions.
In my eyes, Quantum Computing stock is benefiting for one reason above all else (which is quite significant), given the current landscape.
Additionally, The company's name isn't just associated with one of AI's hottest new themes -- it's literally the name of the actual trend.
To me, this is a case study revolving around the idea of investors blindly chasing narratives over sound fundamentals.
I think that Quantum Computing is headed toward insolvency and could wind up bankrupt by 2030 (if not sooner) (quite telling).
Alternatively, regulators could begin to scrutinize the company more heavily, and Quantum Computing could end up as a delisted stock.
Regardless of how things shake out, I think Quantum Computing's equity value will diminish significantly in the coming years.
For this reason, I think the company will have little-to-no value by the end of the decade.