Take Note of Quantum Computing Now, Before It Takes Off
Quantum computing is no longer just a niche subject buried deep in academic journals; it’s now a hotbed of investment opportunity. With retail investors looking for the next big wave and tech giants like Amazon (AMZN) paying attention, it’s time to dive into this emerging field. In this article, we’ll take a closer look at two key players: D-Wave Quantum Inc. (QBTS) and Quantum Computing Inc. (QUBT). I’m currently long on both, capitalizing on their recent volatility, and trust me, this is only the beginning.
Why Quantum Computing Matters
The quantum revolution may not have been the linchpin of our investment success so far in 2024—positions in Palantir Technologies (PLTR), Rocket Lab USDA (RKLB), and SoFi Technologies (SOFI) have truly been home runs. While Rocket Lab recently achieved a remarkable feat by successfully launching in two different hemispheres within a 24-hour window, Palantir’s stock surged after Wedbush analyst Dan Ives upped his target price to $75. But let’s not overlook quantum computing; it may not be the best thing since sliced bread, but it’s definitely raising eyebrows.
Amazon’s Quantum Ambitions
In a clear sign that quantum is on the radar of tech giants, Amazon Web Services (AWS) recently launched its Quantum Embark Program. This initiative is aimed at helping clients gear up for what Amazon predicts to be a significant era in quantum computing. Following this announcement, small publicly traded companies like QBTS and QUBT saw their stock rocket, underscoring the market’s readiness to engage with this revolutionary technology.
Company Insights: QUBT and QBTS
Let’s cast the spotlight on QUBT first. Earlier this month, the company reported a third-quarter unadjusted loss per share of $0.06 with nearly no revenue. Despite operating at a cash loss of $4.6 million for the quarter and holding just $3.1 million in cash, they managed to raise about $40 million in a recent direct offering. The kicker? They secured a significant purchase order for their thin film lithium niobate photonic chip foundry from the University of Texas. While their financials may seem alarming, this contract tells us they’re making valuable strides in the quantum space.
Now shifting gears to QBTS, this company posted a third-quarter unadjusted loss per share of $0.11 against revenue of $1.87 million. While some might raise an eyebrow at the discrepancy between expectations and outcomes, the company holds a solid cash position of $29.3 million. However, they are saddled with $46 million in debt, suggesting that their financials also come with caveats.
Risk vs. Reward
Neither company is without flaws; both have their share of financial burdens and operational losses. But here’s the rub—they’re at the forefront of an industry that holds the potential to revolutionize technology as we know it. The quantum gold rush could be just around the corner, and if the shares of both QUBT and QBTS dip, it may present an attractive entry point for savvy traders and investors.
Building Your Position
For me, it’s about striking while the iron is hot. Just like I did with PLTR, RKLB, and SOFI—building large positions while their stocks were still consolidating—I plan to do the same with QUBT and QBTS. This is not about day trading; this is investment strategy 101, and I’m armed with a net rather than a line and hook.
Looking Ahead: What’s Next?
Keep a close eye on these names as both companies navigate an exhilarating and unpredictable landscape. If they show signs of recovery, or if Amazon’s Quantum Embark Program catalyzes larger investments into quantum tech, the upside potential could be enormous. Buckle up, because we may just be scratching the surface of what quantum computing can accomplish.
Final Thoughts
In closing, while both QBTS and QUBT come with their share of risks, the potential reward is contingent on a technology that could redefine computing. Stay alert, follow the charts, and remain disciplined. This is your chance to tap into a frontier of technology that larger investors are already eyeing, so don’t wait too long before you make your move!