Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 6 Jun, 25 | QUBT | Speculative Buy | USD 12.23 | USD 13.6 | USD 14.3 | 3 days | Closed |
22.65%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
Quantum Computing Inc., an integrated photonics company, offers accessible and affordable quantum machines. The company offers Dirac systems are portable, low power, and room temperature qubit and qudit entropy quantum computers (EQC); reservoir computing; remote sensing; and single photon imaging. It also provides Quantum random number generator (uQRNG), a portable device that provides genuine random numbers directly from quantum processes; and quantum authentication which eliminates vulnerabilities inherent in classical cryptographic schemes by offering a comprehensive entanglement-based quantum cyber solution that seamlessly integrates into existing telecom fiber and communication infrastructure. The company was formerly known as Innovative Beverage Group Holdings, Inc. Quantum Computing, Inc. was incorporated in 2018 and is based in Hoboken, New Jersey.
Strengthened Cash Position: Increased cash and cash equivalents to $166.4 million as of March 31, 2025, representing an $87.5 million increase from year-end 2024
Net Income Improvement: Achieved net income of $17.0 million in Q1 2025, up from a net loss of $6.4 million in Q1 2024, primarily driven by a $23.6 million non-cash gain
Declining Gross Margin: Gross margin decreased to 33% in Q1 2025, down from 41% in Q1 2024.
Higher Operating Expenses: Operating expenses rose to $8.3 million in Q1 2025, up 31.7% from $6.3 million in the prior year.
QUBT’s heavy reliance on non-recurring gains and emerging quantum markets presents uncertainty regarding the sustainability of future profitability and consistent revenue growth
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 12.23 | 11.0 | 13.6 | 14.3 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Financial Performance Overview: In the first quarter of 2025, the company generated revenues of approximately $39,000, representing a 44% year-over-year increase compared to $27,000 in Q1 2024. The gross margin for the quarter stood at 33%, down from 41% in the prior year, with management noting that margin variability is expected at current revenue levels. Operating expenses rose to $8.3 million from $6.3 million a year earlier, largely due to increased employee-related costs.
Profitability and Net Income Gains: The company reported a significant turnaround in profitability during the first quarter of 2025, achieving net income attributable to common stockholders of $17.0 million, or $0.13 per basic share. This compares favorably with a net loss of $6.4 million, or $(0.08) per basic share, in the same period last year. The improvement was primarily driven by a $23.6 million non-cash gain related to the mark-to-market valuation of the company's warrant liability, linked to its 2022 merger with QPhoton.
Strengthened Balance Sheet: As of March 31, 2025, the company's total assets reached $242.5 million, a notable increase from $153.6 million at the end of 2024. Cash and cash equivalents surged by $87.5 million to $166.4 million, supported by $93.6 million in net proceeds from a private placement of common stock during the quarter. Total liabilities decreased to $21.7 million, down by $24.6 million from year-end 2024, reflecting non-cash adjustments in the company's warrant liability. Shareholders' equity rose to $220.8 million.
Progress in Quantum Photonic Chip Foundry: Operationally, QCi achieved a major milestone with the completion of its Quantum Photonic Chip Foundry in Tempe, Arizona. The facility is now focused on developing its process design kit (PDK) and fulfilling customer orders, having already secured five initial orders for its foundry services. This development enhances QCi’s manufacturing capabilities and supports the broader commercialization of its TFLN-based technologies.
Expanding Market Adoption of Quantum Systems: QCi continued to drive adoption of its quantum solutions through key partnerships and sales. On January 15, 2025, the company entered a collaboration with Sanders Tri-Institutional Therapeutics Discovery Institute to provide cloud-based access to its Dirac-3 quantum optimization machine for biomedical research. Subsequent to the quarter, QCi announced the sale of a Quantum Photonic Vibrometer to Delft University of Technology and an EmuCore reservoir computing device to a major automotive manufacturer, underscoring global demand across academic and industrial sectors.
Strengthening Strategic Partnerships and Leadership: During the quarter, QCi enhanced its leadership by appointing Eric Schwartz to its Board of Directors. Schwartz brings more than 20 years of expertise in corporate finance, M&A, and strategic growth, aligning with QCi’s plans to scale its manufacturing operations and market presence. Furthermore, on April 30, 2025, QCi secured a subcontract valued at approximately $406,000 with NASA's Langley Research Center to advance quantum techniques for improving space-based LIDAR data reliability. The project builds upon QCi’s prior engagements with NASA and highlights the strategic relevance of its quantum solutions.
Technical Commentary:
QUBT's stock price is currently hovering near key support levels, suggesting the potential for near-term upside movement. The 14-period RSI is rising above the midpoint, providing additional confirmation of a positive outlook. Moreover, the stock has surpassed both its 21-day and 50-day Simple Moving Averages, reinforcing a bullish bias and likely serving as short-term support levels. Overall, the technical indicators point to a favorable setup for continued gains.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Quantum Computing, Inc. (NASDAQ: QUBT) at its current market price of USD 12.23 as of June 6, 2025 (6:35 am PDT).
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Computer Hardware
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| QUBT Quantum Computing Inc |
0.48 2.32% | 21.13 | - | - | 195.83 | 0.95 | 197.49 | -2.832 |
| DELL Dell Technologies Inc |
1.74 1.41% | 125.22 | 17.90 | 12.25 | 0.83 | 4.39 | 1.05 | 10.50 |
| ANET Arista Networks |
1.39 1.37% | 102.52 | 39.49 | 31.45 | 13.08 | 11.15 | 12.18 | 31.54 |
| SMCI Super Micro Computer Inc |
-0.18 0.37% | 48.56 | 49.25 | 28.90 | 5.69 | 17.11 | 5.65 | 57.68 |
| CAJFF Canon Inc |
- -% | 27.55 | 15.35 | 12.14 | 0.0071 | 1.35 | 1.14 | 7.50 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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