Shares of quantum computing stocks like D-Wave Quantum (NYSE: QBTS), Quantum Computing (NASDAQ: QUBT), and Rigetti Computing (NASDAQ: RGTI) were tumbling again on Monday for the second time in just three sessions after Meta Platforms CEO Mark Zuckerberg added his name to the growing chorus of skeptics on the new technology.
Last Wednesday, quantum stocks plunged more than 40% after Nvidia CEO Jensen Huang said at CES that quantum computing technology was 15 to 30 years away from being “very useful.”
Zuckerberg appeared to express similar skepticism in an interview over the weekend with Joe Rogan. Additionally, tech stocks fell broadly today in what seemed to be risk-off behavior, as bets on Federal Reserve rate cuts this year declined after a strong jobs report last Friday. That movement also likely weighed on quantum stocks, as all three companies are unprofitable and have minimal revenue.
As of 11:16 a.m. ET, D-Wave Quantum was down 31.4%, Quantum Computing 24.7%, and Rigetti Computing had lost 25.5%.
In an interview with Rogan, Zuckerberg said in response to a question on quantum computing: “My understanding is that’s still quite a ways off from being a very useful paradigm. I think Google just had some breakthrough, but I think most people still think that’s like a decade-plus out, so my guess is that we’re going to have pretty smart AIs even before that.”
Like Huang last week, Zuckerberg is also throwing cold water on the idea that quantum computing is about to revolutionize the tech industry, in spite of Alphabet‘s recent research milestone.
D-Wave Quantum also reported some news of its own last Friday, filing for a stock sale plan that allows it to sell up to $150 million in stock. Investors tend to dislike secondary offerings, as they dilute existing shareholders, but raising cash when the stock price is elevated makes sense, especially for a development-stage company like D-Wave.
Also on Friday, D-Wave announced that fiscal 2024 bookings would top $23 million, up 120% from fiscal 2023 levels, and Q4 bookings would be at least $18 million, up 500% from the quarter a year ago. CEO Alan Baratz also pushed back on Huang’s narrative on CNBC, saying that there are different kinds of quantum computing solutions, and some are maturing faster than others. He also said D-Wave’s annealing quantum computing solutions are currently available and solving real problems.
Quantum Computing didn’t have any news of its own to report, but the company is even smaller than D-Wave, with less than $1 million in revenue over the last four quarters. Its stock has soared even higher than D-Wave’s over the last year, a disconnect that could lead to a continued decline in Quantum Computing’s shares.
