Quantum Computing Stock’s Wild Ride: Why It Exploded Then Imploded

Quantum computing shares just took investors on the rollercoaster ride of the year—soaring to dizzying heights before crashing back to reality.

The Volatility Whiplash

Traders watched in disbelief as the stock ripped upward on breakthrough rumors, only to collapse when cold, hard numbers hit the tape. Another classic case of hype outpacing actual revenue—because who needs profits when you've got quantum entanglement?

Market Mechanics Exposed

The sudden surge traced back to leaked lab results suggesting quantum supremacy milestones. But when the official report dropped with more caveats than a pharmaceutical ad, the selloff hit faster than qubit decoherence. Wall Street's algo-traders amplified both moves—pumping first, then dumping with ruthless efficiency.

Quantum's Reality Check

Behind the charts lies the brutal truth: commercial quantum applications remain years away. The sector's caught between revolutionary potential and quarterly earnings calls—a mismatch that always ends the same way. Another reminder that in tech investing, sometimes the most quantum thing is your portfolio's disappearing act.

Image source: Getty Images.

Why investors love Quantum Computing stock

What's behind the run-up? On Wednesday, QCi announced its offer for $500 million in new stock for private investors was "oversubscribed" -- meaning there was more demand to buy shares than there were shares available to buy. "Several large existing shareholders" participated in the stock offering, alongside one new "preeminent global alternative asset manager."

The shares sold for an average price of $18.61 per share. The same shares today cost... more than $21.

Is Quantum Computing stock a buy?

So private investors in QCi got a pretty sweet deal, a 13% gain -- not bad for two days' work. But what about everyone else invested in QCi?

Well, they're going to have to eat a bit of stock dilution, I fear. QCi says it issued 26.9 million new shares in the offering, and that's going to lift its share count from 186.8 million to 213.7 million -- about 14.4% stock dilution. This means that if QCi ever becomes profitable in the future, current investors will have 14.4% less of a claim on those profits.

That's not an immediate concern, however, as no analysts following the company currently predict QCi stock turning profitable... ever.

The good news is that with the new cash from this offering, QCi's bank account is now overflowing with $850 million. Even with cash burn predicted to more than double to $17 million next year, that should be enough cash to keep QCi in business for years -- or even decades.