Quantum stocks got dragged into a broader market risk off move this week

[MiguelCardozo]

IonQ tumbles 8%, D-Wave and Rigetti drop 6% as geopolitical jitters spread

Speculative quantum computing stocks took a hit this week as rising geopolitical tension between Washington and Tehran drove investors away from risk assets broadly, sending Bitcoin lower alongside a wave of high multiple tech names. IonQ fell roughly 8 percent while D-Wave, Rigetti and Quantum Computing Inc all dropped around 6 percent in the same session

Why quantum stocks specifically get hit hardest

Quantum computing pure plays are some of the most speculative, pre revenue names trading on public markets, carrying price to sales multiples that have been reported as high as roughly 109 for IonQ, 836 for Rigetti and 791 for D-Wave by some measures. Stocks with valuations that stretched almost always take the sharpest hits first whenever broader market sentiment turns risk averse, since there's no earnings floor or defensive cash flow underpinning the price to slow the fall

This wasn't really about quantum computing at all

None of this pullback was driven by anything specific to quantum hardware or research progress, it was pure macro spillover from a geopolitical shock hitting risk assets across the board. That's actually the more important takeaway for anyone tracking the sector, quantum stocks currently behave less like a distinct industry with its own fundamentals driving price action and more like a high beta proxy for general risk appetite, rising and falling with the broader market's mood well before any company specific news even enters the picture

Ionq Tumbles 8 D Wave Rigetti Quantum Computing Drop 6 As Risk Off Ripple Effects Hit Speculative Quantum Stocks247wallst.com