{"id":170968,"date":"2025-09-26T18:43:08","date_gmt":"2025-09-26T18:43:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/170968\/"},"modified":"2025-09-26T18:43:08","modified_gmt":"2025-09-26T18:43:08","slug":"why-quantum-computing-stock-popped-then-dropped","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/170968\/","title":{"rendered":"Why Quantum Computing Stock Popped, Then Dropped"},"content":{"rendered":"\n

Quantum Computing raised $500 million in new cash from a private stock offering this week.<\/p>\n

The quantum computing stock says it now has $850 million in the bank.<\/p>\n

Annual cash burn today is less than $10 million.<\/p>\n

10 stocks we like better than Quantum Computing \u203a<\/a><\/p>\n

Shares of eponymous quantum computing<\/a> company Quantum Computing Inc. (NASDAQ: QUBT), also known as QCi, soared more than 13% in early trading Friday before turning tail and giving up nearly all their gains.<\/p>\n

As of 11 a.m. ET, QCi stock is still up 2%.<\/p>\n

\"Spherical Image source: Getty Images. <\/p>\n

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.”<\/p>\n<\/p>\n

The shares sold for an average price of $18.61 per share. The same shares today cost… more than $21.<\/p>\n

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?<\/p>\n

Well, they’re going to have to eat a bit of stock dilution<\/a>, 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.<\/p>\n

That’s not an immediate concern, however, as no analysts following the company currently predict QCi stock turning profitable… ever.<\/p>\n

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.<\/p>\n

Before you buy stock in Quantum Computing, consider this:<\/p>\n

The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Quantum Computing wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $651,593!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,089,215!*<\/p>\n","protected":false},"excerpt":{"rendered":"Quantum Computing raised $500 million in new cash from a private stock offering this week. The quantum computing…\n","protected":false},"author":2,"featured_media":170969,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[64,63,257,111573,111572,111574,17630,2292,111571,105],"class_list":{"0":"post-170968","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-au","9":"tag-australia","10":"tag-computing","11":"tag-motley-fool-stock-advisor","12":"tag-private-investors","13":"tag-private-stock-offering","14":"tag-qci","15":"tag-quantum-computing","16":"tag-stock-dilution","17":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/170968","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=170968"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/170968\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/170969"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=170968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=170968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=170968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}