{"id":171081,"date":"2025-09-26T17:31:09","date_gmt":"2025-09-26T17:31:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/171081\/"},"modified":"2025-09-26T17:31:09","modified_gmt":"2025-09-26T17:31:09","slug":"why-quantum-computing-stock-popped-then-dropped","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/171081\/","title":{"rendered":"Why Quantum Computing Stock Popped, Then Dropped"},"content":{"rendered":"<p>Key Points<\/p>\n<p>Quantum Computing raised $500 million in new cash from a private stock offering this week.<\/p>\n<p>The quantum computing stock says it now has $850 million in the bank.<\/p>\n<p>Annual cash burn today is less than $10 million.<\/p>\n<p>Shares of eponymous <a href=\"https:\/\/www.fool.com\/terms\/q\/quantum-computing\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=4faeb4df-4313-43ca-b2b7-4d7812e908e4\" target=\"_blank\" rel=\"noopener nofollow\">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<p>As of 11 a.m. ET, QCi stock is still up 2%.<\/p>\n<p>Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. <a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=68c04669-58a1-423b-b2b8-97a8b62b0d27&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001026%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Dtop_incontent_pitch_feed_partner%26ftm_pit%3D17174&amp;utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=4faeb4df-4313-43ca-b2b7-4d7812e908e4\" rel=\"noopener nofollow\" target=\"_blank\">Learn More \u00bb<\/a><\/p>\n<p><img decoding=\"async\" fetchpriority=\"high\" alt=\"Spherical quantum computing chip.\" src=\"https:\/\/barchart-news-media-prod.aws.barchart.com\/FC\/e318fdc9b22b75d243ad7cd039d32e37\/%3Furl%3Dhttps%253a%252f%252fg.foolcdn.com%252feditorial%252fimages%252f835265%252fspherical-quantum-computing-chip.jpg%26amp%3Bw%3D700\"\/><\/p>\n<p class=\"caption\">Image source: Getty Images.<\/p>\n<p>Why investors love Quantum Computing stock<\/p>\n<p>What&#8217;s behind the run-up? On Wednesday, QCi announced its offer for $500 million in new stock for private investors was &#8220;oversubscribed&#8221; &#8212; meaning there was more demand to buy shares than there were shares available to buy. &#8220;Several large existing shareholders&#8221; participated in the stock offering, alongside one new &#8220;preeminent global alternative asset manager.&#8221;<\/p>\n<p>The shares sold for an average price of $18.61 per share. The same shares today cost&#8230; more than $21.<\/p>\n<p>Is Quantum Computing stock a buy?<\/p>\n<p>So private investors in QCi got a pretty sweet deal, a 13% gain &#8212; not bad for two days&#8217; work. But what about everyone else invested in QCi?<\/p>\n<p>Well, they&#8217;re going to have to eat a bit of <a href=\"https:\/\/www.fool.com\/terms\/s\/share-dilution\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=4faeb4df-4313-43ca-b2b7-4d7812e908e4\" target=\"_blank\" rel=\"noopener nofollow\">stock dilution<\/a>, I fear. QCi says it issued 26.9 million new shares in the offering, and that&#8217;s going to lift its share count from 186.8 million to 213.7 million &#8212; 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<p>That&#8217;s not an immediate concern, however, as no analysts following the company currently predict QCi stock turning profitable&#8230; ever.<\/p>\n<p>The good news is that with the new cash from this offering, QCi&#8217;s bank account is now overflowing with $850 million. Even with <a href=\"https:\/\/www.fool.com\/terms\/c\/cash-burn\/?utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=4faeb4df-4313-43ca-b2b7-4d7812e908e4\" target=\"_blank\" rel=\"noopener nofollow\">cash burn<\/a> predicted to more than double to $17 million next year, that should be enough cash to keep QCi in business for years &#8212; or even decades.<\/p>\n<p>Should you invest $1,000 in Quantum Computing right now?<\/p>\n<p>Before you buy stock in Quantum Computing, consider this:<\/p>\n<p>The Motley Fool Stock Advisor analyst team just identified what they believe are the <a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=e52f33b4-8957-43ec-879a-61d952ac458f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001093%26ftm_cam%3Dsa-bbn-evergreen%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D17514&amp;utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=4faeb4df-4313-43ca-b2b7-4d7812e908e4\" rel=\"noopener nofollow\" target=\"_blank\">10 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<p>Consider when Netflix made this list on December 17, 2004&#8230; if you invested $1,000 at the time of our recommendation, you\u2019d have $651,593!* Or when Nvidia made this list on April 15, 2005&#8230; if you invested $1,000 at the time of our recommendation, you\u2019d have $1,089,215!*<\/p>\n<p>Now, it\u2019s worth noting Stock Advisor\u2019s total average return is 1,058% \u2014 a market-crushing outperformance compared to 188% for the S&amp;P 500. Don\u2019t miss out on the latest top 10 list, available when you join Stock Advisor.<\/p>\n<p><a class=\"ticker_pitch\" href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=e52f33b4-8957-43ec-879a-61d952ac458f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-bn%3Faid%3D8867%26source%3Disaeditxt0001093%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D17514%26ftm_veh%3Darticle_pitch_feed_partners%26company%3DQuantum%2520Computing&amp;utm_source=globeandmail&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=4faeb4df-4313-43ca-b2b7-4d7812e908e4\" rel=\"noopener nofollow\" target=\"_blank\">See the 10 stocks \u00bb<\/a><\/p>\n<p>*Stock Advisor returns as of September 22, 2025<\/p>\n<p><a href=\"https:\/\/www.fool.com\/author\/1297\/\" target=\"_blank\" rel=\"noopener nofollow\">Rich Smith<\/a> has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" target=\"_blank\" rel=\"noopener nofollow\">disclosure policy<\/a>.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" width=\"1\" height=\"1\" style=\"display:none;\" referrerpolicy=\"unsafe-url\" src=\"https:\/\/barchart-news-media-prod.aws.barchart.com\/FC\/e318fdc9b22b75d243ad7cd039d32e37\/pixel%3Fslug%3Dmotleyfoolgm-2025-9-26-why-quantum-computing-stock-popped-then-dropped\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"Key Points Quantum Computing raised $500 million in new cash from a private stock offering this week. The&hellip;\n","protected":false},"author":2,"featured_media":171082,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[45,161,49,48,285,46,133,1828,1829,1830,1831,1836,1835,1834,1832,1833,61,1837],"class_list":["post-171081","post","type-post","status-publish","format-standard","has-post-thumbnail","category-computing","tag-business","tag-business-news","tag-ca","tag-canada","tag-computing","tag-economy","tag-finance","tag-financial-information","tag-investing","tag-investor","tag-market-news","tag-motley-fool","tag-press-releases","tag-sedar","tag-stock-research","tag-stock-valuation","tag-technology","tag-the-globe-and-mail"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/171081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=171081"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/171081\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/171082"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=171081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=171081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=171081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}