Well now, it appears we’ve a fresh bubble a-brewin’, and this one’s dressed up in the fancy clothes of ‘quantum computing.’ Folks are throwin’ good money after bad, chasin’ a promise that’s likely further off than a politician’s honest intention. These ‘quantum’ stocks, you see, have been fallin’ faster than a gambler’s hopes in a saloon. IonQ‘s down a good thirty-four percent this year, and Rigetti Computing ain’t far behind. D-Wave Quantum, bless its heart, is right there with ’em, sinkin’ like a stone in a muddy river.
There’s a temptation, mind you, to ‘buy the dip,’ as they say on Wall Street. A fella sees a price fallin’ and thinks he’s found a bargain. But I’d wager these ain’t bargains at all. They’re more like mirages in the desert – lookin’ promising from afar, but offerin’ nothin’ but disappointment up close. There are sounder ways to gamble on the future, I assure you, even if they don’t involve the word ‘quantum’ attached to ’em.
The Trouble With Pure Plays
Even after this little tumble they’ve taken, these companies are valued like they’ve already solved the riddle of the universe. IonQ trades at ninety-nine times its sales. Ninety-nine! Why, a fella could buy a small kingdom for that kind of money. D-Wave is at two hundred and seventeen times sales, and Rigetti… well, they’re pushin’ six hundred. It’s enough to make a sensible man clutch his wallet and run for the hills.
And the revenue these numbers are based on? A pittance, I tell ya. D-Wave managed a measly $3.7 million last quarter. IonQ scraped together about $40 million. And instead of makin’ a profit as they grow, they’re burnin’ through cash faster than a steamboat through coal. They’re hopin’ for a miracle, that’s what they are.
Now, investin’ in these companies is all about believin’ they’ll deliver a whole heap of revenue someday. But I reckon there’s already too much expectation baked into those stock prices. And there’s a timeline problem, too. Nobody knows when – or even if – this technology will actually amount to somethin’. It could be a long, long wait, and a fella could be left holdin’ the bag.
A recent report from MIT concluded as much, sayin’ large-scale applications are likely a good ways off. The folks at Morningstar reckon it’ll be five to ten years before we see anythin’ practical. And general-use quantum computing – the kind that would justify these fancy valuations – is likely twenty years away. That’s a long time to be losin’ money, with no guarantee you’ll ever see a return. It’s like bettin’ on a horse that ain’t even been born yet.
Two Smarter Ways to Play the Game
Alphabet (GOOG +1.49%) (GOOGL +1.50%) has, arguably, the strongest quantum research program in the world. Their Willow chip achieved a breakthrough in error correction, and they’ve got the resources to fund this research indefinitely. They could buy and sell these ‘pure plays’ for pocket change, if they felt so inclined.
With annual revenue topin’ $400 billion, Google Search still growin’ at seventeen percent, and Google Cloud surgein’ to over $70 billion, quantum computin’ is just a cherry on top of an already impressive sundae. They can afford to play the long game, and that’s what sensible folks do.
International Business Machines (IBM 0.87%) also has a world-class quantum program, with a research budget that dwarfs these smaller companies. While they ain’t as dominant as Alphabet, they still generated $67.5 billion in revenue last year, includin’ a decade-high $14.7 billion in free cash flow. That’s a healthy bank account, I reckon.
With quantum commercialization still years – maybe decades – away, the smartest approach is to own companies that can fund the research from their profits. Alphabet and IBM give you a piece of the action without the risk of these ‘pure plays’ tradin’ at prices that defy common sense. It’s like buildin’ a solid foundation instead of chasin’ a rainbow. And a sensible man always prefers a solid foundation.
Read More
- Top 15 Insanely Popular Android Games
- Did Alan Cumming Reveal Comic-Accurate Costume for AVENGERS: DOOMSDAY?
- 4 Reasons to Buy Interactive Brokers Stock Like There’s No Tomorrow
- Gold Rate Forecast
- EUR UAH PREDICTION
- ELESTRALS AWAKENED Blends Mythology and POKÉMON (Exclusive Look)
- Silver Rate Forecast
- New ‘Donkey Kong’ Movie Reportedly in the Works with Possible Release Date
- Core Scientific’s Merger Meltdown: A Gogolian Tale
- DOT PREDICTION. DOT cryptocurrency
2026-03-01 23:14