Q: Good morning, I recently had someone ask me about Quantum computing. They are interested in this stock as a short speculative play. The stock recently traded under a dollar and is relatively small. What do you think of the stock and is there any others in the space that are more desirable?
5i Research Answer:
GOOG had the first quantum breakthrough and it would be our choice amongst a very risk sector filled with small cap companies and promotions and FOMO investors. IONQ would be next for us. QUBT is $2B market cap. The stock has soared over the past year. The company has $166M cash, but has never had positive cash flow. Losses are expected to continue and it has a minimal revenue base currently (less than $1M in revenue expected this year). Insiders own 16%. It is going to run (or fall) with the sector, but there is little to analyze here. We would consider it extremely speculative and would not give it a strong endorsement.