3 Quantum Computing Stocks Down Sharply -- but 1 Offers Exceptional Value
Quantum stocks have cooled after a massive rally, but one company may offer the best mix of commercial traction, growing bookings, and a more reasonable valuation than its peers.
3 Quantum Computing Stocks Down Sharply -- but 1 Offers Exceptional Value
Overview
Shares of IonQ (NYSE: IONQ), D-Wave Quantum (NYSE: QBTS), and Rigetti Computing (NASDAQ: RGTI) all surged in April and May as their quarterly results came in ahead of analysts' estimates and Wall Street started taking the sector seriously again. Then came the reversal. IonQ fell by 21% in a single week in early June despite posting record quarterly revenue. D-Wave is down roughly 23% year to date and has struggled to hold gains even after a bookings quarter that most software companies would celebrate. Rigetti, which has less commercial revenue than the other two, sits down 19% year to date. The Quantinuum (NASDAQ: QNT) IPO filing -- with its $12.7 billion valuation and Honeywell (NASDAQ: HON) backing -- reminded public market investors that a better-funded competitor was in the room.
This is what a sector reset looks like. Not a collapse of the underlying technology, but a valuation recalibration after a run-up that had gotten well ahead of the fundamentals. For investors with patience, the gaps between prices and progress are where opportunities live. But not every stock in a beaten-down sector deserves a second look.
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Originally published at www.fool.com.
