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IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. Are Sending Shockwaves Through Wall Street With This $895 Million Warning
The Motley Fool • • business
Key Points:
- Quantum computing stocks like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have seen massive gains over the past two years, with share increases ranging from approximately 400% to over 1,800%.
- Despite these gains, insiders—high-ranking executives and major shareholders—have been net sellers of nearly $895 million in stock across these companies since September 2024, signaling potential caution.
- Insider buying has been minimal, with only small amounts purchased by IonQ and D-Wave insiders, while Rigetti and Quantum Computing insiders have made no purchases in the same period.
- The high price-to-sales ratios of these companies, far exceeding 30 and reaching into the hundreds, suggest their valuations may be in a speculative bubble, raising concerns about long-term sustainability.
- While insider selling can be partly attributed to tax and diversification reasons, the lack of insider buying amid soaring valuations prompts skepticism about future stock appreciation from a knowledgeable perspective.
