Quantum Computing Inc. (QUBT) is experiencing a significant decline in its stock price, which can be attributed to recent critical commentary from Citron Research. Citron has labeled the recent surge in quantum computing stocks, including QUBT, as "ridiculous," highlighting concerns over the company's spending on research and development. Specifically, Citron pointed out that Quantum Computing's R&D expenses were only $2.24 million in the third quarter, a decrease from $2.32 million in the same period last year. This is seen as a stark contrast to other companies in the sector, such as IONQ and Rigetti, which have allocated significantly more resources to R&D.
Additionally, the recent awarding of a $26,000 contract from NASA to Quantum Computing has been criticized by industry experts as insufficient to justify the stock's previous run-up. Nigam Arora, CEO and CIO of the Arora Report, described the contract as "very small" and not warranting the recent hype surrounding the stock. These factors, combined with a broader skepticism about the sustainability of the quantum computing stock rally, have contributed to the downward pressure on QUBT's stock.
Quantum Computing Inc.'s stock is currently priced at $23.15, reflecting a 9.85% decrease from its previous close of $25.68. The stock experienced significant volatility, with a high of $27.15 and a low of $17.63.