Tag: IONQ

Top Quantum Computing Stocks Worth Considering

by Fred Fuld III

Quantum computing represents a transformative leap in technology, poised to revolutionize industries by solving complex problems far beyond the capabilities of classical computers. Unlike traditional bits, which are limited to a state of 0 or 1, quantum bits, or qubits, can exist simultaneously in multiple states due to the principles of superposition and entanglement. This allows quantum computers to process a vast number of possibilities concurrently, offering unprecedented computational power.

Quantum computing can be used by many industries, including artificial intelligence, analyzing big data, the security industry, finance, military, drug design, and aerospace.

The quantum computing market is on the cusp of significant expansion. Projections indicate that the global market size will grow from approximately $1.16 billion in 2024 to over $12.62 billion by 2032, reflecting a compound annual growth rate (CAGR) of 34.8%.

This rapid growth is driven by advancements in quantum technology and increasing investments from both private and public sectors. Notably, venture capital investments in quantum computing reached $1.2 billion in 2023, underscoring sustained investor confidence in the field 

Several companies are at the forefront of this burgeoning industry:

D-Wave Quantum Inc. (QBTS): D-Wave is a pioneer in quantum computing, known for developing some of the earliest commercial quantum computers. The company’s focus is on quantum annealing, a specific approach to quantum computing aimed at solving optimization problems. The stock has a market capitalization of $2.2 billion and is currently generating negative earnings. Revenues have increased by 14% year-over-year. The company is debt free.

IonQ Inc. (IONQ): IonQ specializes in trapped-ion quantum computing technology, which offers high-fidelity qubits and the potential for scalable quantum systems. The company has garnered significant attention for its technological advancements and strategic partnerships. The company has a market cap of $9 billion and is currently not currently profitable. IonQ had a revenue increase of almost 90% year-over-year.

Quantum Computing Inc. (QUBT): This company focuses on providing software tools and applications designed to leverage the capabilities of quantum computers for complex problem-solving across various industries. On December 17, 2024, Quantum Computing Inc. announced a contract with NASA’s Goddard Space Flight Center for its imaging technology, leading to a significant surge in its stock price. The company has a market capitalization of $2.6 billion and is currently generating negative earnings. Sales jumped 35.6% year-over-year.

Rigetti Computing, Inc. (RGTI): Rigetti is known for its full-stack approach to quantum computing, integrating hardware and software solutions. The company aims to make quantum computing accessible to a broader range of applications and industries. The company has a market cap of $3 billion and is currently not currently profitable. Unfortunately, sales dropped 19% year-over-year.

Investing in the quantum computing industry offers significant potential rewards, given the anticipated growth and transformative impact of the technology. However, it’s important to note that many companies in this sector are still in developmental stages and may not yet be profitable, as reflected by negative P/E ratios. Investors should conduct thorough due diligence, considering both the promising prospects and inherent risks associated with emerging technologies.

NYSE Stocks with the Highest Short Interest for Short Squeeze Plays

by Fred Fuld III

Have you ever wondered why stocks that are heavily shorted can spike up in price so much?

When you short a stock, it means that you plan to make money from a drop in the price of a stock. Technically, what happens is that you borrow shares of a stock, sell those shares immediately, then buy back those shares at a hopefully lower price so that you can return those shares. This all happens electronically, so you don’t actually see all the borrowing and returning of shares; it just shows up on your screen as a negative number of shares.

Short sellers can make money, but sometimes when the stock moves against them, and begins to rise, the short sellers jump in fast to buy shares to cover their positions, creating what is called a short squeeze. When a short squeeze takes place, it can cause the share prices to increase fast and furiously. Any positive news can trigger the short squeeze.

Some traders utilize this situation by looking for stocks to buy that may have a potential short squeeze. Here is what a short squeeze trader should take into consideration:

Short Percentage of Float ~ The float is the number of freely tradable shares and the short percentage is the number of shares held short divided by the float. Amounts over 10% to 20% are considered high and potential short squeeze plays.

Short Ratio / Days to Cover / Short Interest Ratio -This is probably the most important metric when looking for short squeeze trades, no matter what you call it. This is the number of days it would take the short sellers to cover their position based on the average daily volume of shares traded. This is a significant ratio as it shows how “stuck” the short sellers are when they want to buy in their shares without driving up the price too much. Unfortunately for the shortsellers, the longer the number of days to cover, the bigger and longer the squeeze.

Short Percentage Increase ~ This is the percentage increase in the number of short sellers from the previous month.

The following are some heavily shorted stocks that may be worth considering.

CompanySymbolShort InterestShort % ChangeShort Interest Ratio
Fisker IncFSR47.28%13%3.8
Carvana CoCVNA40.04%-11%3.9
C3.ai IncAI38.08%-2%4.3
Kohl’s CorporationKSS27.11%8%5.4
Cinemark Holdings, Inc.CNK26.53%-1%9.4
IONQ IncIONQ26.22%2%5.4

The fourth stock on the list, Kohl’s (KSS) has over 27% of its float shorted, an increase of 8% over last month.

The short interest ratio is 5.4, which means that it would take the short sellers over five days to cover their position, based on recent average volume.

Cinemark Holdings (CNK) is another stock that is heavily shorted with over 26% now short with almost no change in short interest from the previous month.

The short interest ratio is 9, which means that it would take the short sellers over nine days to cover their position, based on recent average volume.

Just keep in mind that just because a stock has good ratios and is heavily shorted, doesn’t mean that the stock will go up, especially in a bear market. Also, stocks that are significantly shorted may be shorted for a reason.

Disclosure: Author had no positions in any of the above at the time the article was written.

Top Quantum Computing Stocks

by Fred Fuld III

So what is quantum and why is it necessary?

Quantum computing uses subatomic particles, such as electrons or photons to perform calculations that would normally take millions of years.

Instead of a normal computer bit, which utilizes zeros and ones, the quantum computer qubit can be in multidimensional state, allowing for an enormous amount of additional transactions,

Quantum computing can be used in many areas, including artificial intelligence, analyzing big data, the security industry, finance, military, drug design, aerospace, and much more.

According to McKinsey & Co., “Quantum computing now has the potential to capture nearly $700 billion in value as early as 2035, with that market estimated to exceed $90 billion annually by 2040.”

There are really only a couple of pure play stocks in the quantum computing arena, and both of them are very low cap companies.

Arqit Quantum Inc. (ARQQ), based in London, England, has a system called QuantumCloud which creates unbreakable software encryption keys.

The company is actually generating a profit, trading at about five times trailing earnings.

In addition, the company is debt-free, and even has 71 cents in cash per share. That may not seem like a lot, but it is a substantial percentage of the stock price of $2.50 per share, where it closed last Friday.

The stock has an extremely low cap of $307 million.

IonQ Inc. (IONQ) is the other option. The company, based in College Park, Maryland, develops general purpose quantum computing systems.

It is currently generating negative earnings. However, it is debt free and has $2.01 in cash per share at a recent stock price of $5.50 per share.

The stock has a market cap of $1.1 billion.

Let’s see if either of these stocks make a quantum leap.

Disclosure: Author didn’t own any of the above at the time the article was written.