Markets
Money grab - Multiple hands clutching dollar bills
(Getty Images)
The solace of quantum

Quantum computing companies are stacking up piles of cash, capitalizing on their booming stock prices

IONQ, RGTI, QUBT, and QBTS have raised a total of ~$4.5 billion this year as the battle for commercialization heats up.

Claire Yubin Oh

Make hay while the sun is shining, or so the saying goes. And that’s exactly what America’s quantum computing companies have been doing in 2025.

Quantum cash leap

Revenues have been overrated and profits unnecessary, with quantum stocks on fire this year as investors have piled into speculative pockets of the market, helping QBTS and RGTI soar some 1,800% and 2,300%, respectively, in the past year.

Still a young, largely speculative technology, quantum stocks have swung dramatically (but mostly up) on the slightest shift in sentiment. Sometimes, there’s been an actual technological breakthrough. At other moments, rumors of a potential government endorsement, contract, or investment have been enough to send them spiking — and occasionally, good old-fashioned thin air has kept them moving higher as retail traders piled into the stocks.

For the companies themselves, a higher share price is nice, but it really has zero effect on the day-to-day operations of the firm — unless they choose to cash in by selling new shares to the public. And cash in they have, with the four main public pure-play firms — D-Wave Quantum, Rigetti, Quantum Computing, and IonQ — raising more than $4.5 billion through some form of equity offering over the past year, per their press releases, including the following:

Quantum companies have been cashing in
Sherwood News

Indeed, with the exception of Rigetti Computing, which has raised the least of its peers during the past year, three out of the four quantum companies all reported a record-high cash pile in the latest quarter, giving them ample war chests to invest in the nascent technology in the pursuit of “commercialization” — or finally making some serious cash from all of these expensive hyperspeed computers, which promise the potential for breakthroughs in all kinds of fields, from engineering to biology, finance to cryptography.

At the end of Q3, D-Wave’s $836 million cash hoard outstripped that of all of its pure-play peers combined. IonQ’s fresh massive influx in early Q4 is now poised to give that company more than all its rivals combined!

The solace of quantum

Despite the hype, revenues remain negligible. Just this week, D-Wave Quantum reported revenue of just $3.7 million, with operating expenses of more than $30 million. Funding that kind of cash burn, when your operating expenses are 8x your revenue, gets a lot easier when your stock is up 1,800% in the last 12 months and you can build yourself a fortress of a balance sheet to help you weather the leaner times.

Interestingly, the race between (and beyond) the four pure-play quantum companies for commercialization — specifically to scale up hardware while solving reliability issues — is more of a battle between the different methods to achieve this common goal, whether it be using photonic (QUBT), trapped-ion (IONQ), or superconducting (RGTI, QBTS) modalities. The group is also divided in terms of the type of quantum system they’re most specialized in, with D-Wave the sole firm that’s most advanced in annealing quantum, while the others favor gate-based approaches.

Thanks to the insane ride over the last 12 months, each of those approaches should have hundreds of millions of dollars of funding available to them — even if the stock prices fade (which they have done in recent weeks).

Go Deeper: D-Wave CEO’s pitch to the Trump administration: Buy our quantum computers in exchange for an equity stake

More Markets

See all Markets
markets
Luke Kawa

Peloton spikes after Eric Jackson says he’s long the stock at $4

Peloton jumped to session highs to trade up more than 7% after EMJ Capital’s Eric Jackson said he was long the fitness company at $4.

Jackson has a big following in the retail community after serving as the architect of the parabolic rally in online real estate company Opendoor Technologies from July through September.

His tweet at 11:56 a.m. ET coincided with a spike in the share price as well as volumes traded (which may well imply that algos are geared to buy any stock he comments favorably on). Shares of other companies he’s announced a bullish view on since the Opendoor episode have also seen a massive announcement effect, including Better Home & Finance in September and Nextdoor in December.

All three of those stocks are currently down 50% or more from their 52-week highs.

In a thread on X, Jackson indicated that Peloton screens as very cheap based on how much free cash flow it generates, and he sees recent insider purchases as an important vote of confidence in the company from its management team. In an updated tweet, he noted that what he previously thought were insider purchases were actually options exercises, but said that this had no impact on his outlook.

markets

Sandisk bounces off 50-day moving average amid reprieve for memory stocks

Sandisk shares bounced off their 50-day moving average Friday, ending a multiday bloodbath for the stock that sent it down as much as 15% from where it closed last week.

The worst of the slump came as Google Research disclosed details this week of its TurboQuant AI algorithm, which Google said could allow AI language models to operate more efficiently, cutting demand for memory storage at AI data centers.

Sandisk tumbled in response, along with other AI memory trade stocks such as Micron, Western Digital, and Seagate Technology Holdings, which have been some of the market’s top performers this year.

Friday’s reprieve comes as analysts have emphasized the so-called Jevons Paradox implications of the TurboQuant news.

That is, if the Google algorithm lowers the amount of memory required for AI operations, it could make data centers more affordable and cheaper to use, resulting in more investment and thus more sales of memory products over time.

“In this scenario, lower memory requirements could then be offset by higher overall AI adoption and ultimately support inference-led storage demand rather than weaken it,” Citi analysts wrote in a note published Thursday after meeting with Sandisk executives. “This is counter to the initial market reaction, which was instead focused on the short-term view that more efficient AI models would simply reduce memory demand.”

markets

Trump’s Hormuz deadline delay fails to soothe markets amid signs of US and Iranian escalation

There’s little sign of relief in the markets from President Trump’s announcement yesterday of a 10-day delay of the deadline he imposed on Iran to reopen the Strait of Hormuz.

Crude oil prices are climbing and stocks are once again slumping, with the S&P 500, Nasdaq Composite, and Russell 2000 small-cap index all in the red early Friday.

Consumer discretionary stocks sank. Cruise lines Norwegian, Royal Caribbean, and Carnival — which cut its profit outlook on climbing fuel costs as part of earnings Friday — are falling. Other bellwethers of discretionary consumer spending that are less oil-exposed, like Airbnb, DoorDash, and Starbucks, are sinking.

On the other hand, consumer staples stocks — which typically hold up better during tough economic times — rallied.

Soup giant Campbell’s, cigarette seller Altria, ketchup behemoth Kraft Heinz, and spice maker McCormick are climbing.

Energy shares bounced along with rising crude oil prices, with gas driller APA Corporation, oil field services company Halliburton, and integrated giant Exxon gaining.

The energy trade, of course, keyed off the climb in crude oil prices, with benchmark US West Texas Intermediate rising to roughly $98 a barrel, despite Trump’s assurances as part of his deadline delay on Thursday that talks to end the war “are going very well.”

Those comments were largely brushed aside by the markets, a starkly different reaction from the president’s previous delay of the same deadline on Monday. That announcement generated a massive relief rally in crude oil prices and stocks on the hopes that substantive negotiations would begin shortly, or already had.

But Iran’s rejection of an initial US peace plan on Thursday, along with reports that the administration is considering sending another 10,000 US troops to the region and that Chinese ships trying to transit the Hormuz choke point had turned back, seemed to undercut that message.

“Any further statements by Trump about a deal are white noise to the markets,” market analyst Jim Bianco wrote in a post on LinkedIn on Friday. “Only if the IRANIANS say the talks are going well will it impact markets.”

Consumer discretionary stocks sank. Cruise lines Norwegian, Royal Caribbean, and Carnival — which cut its profit outlook on climbing fuel costs as part of earnings Friday — are falling. Other bellwethers of discretionary consumer spending that are less oil-exposed, like Airbnb, DoorDash, and Starbucks, are sinking.

On the other hand, consumer staples stocks — which typically hold up better during tough economic times — rallied.

Soup giant Campbell’s, cigarette seller Altria, ketchup behemoth Kraft Heinz, and spice maker McCormick are climbing.

Energy shares bounced along with rising crude oil prices, with gas driller APA Corporation, oil field services company Halliburton, and integrated giant Exxon gaining.

The energy trade, of course, keyed off the climb in crude oil prices, with benchmark US West Texas Intermediate rising to roughly $98 a barrel, despite Trump’s assurances as part of his deadline delay on Thursday that talks to end the war “are going very well.”

Those comments were largely brushed aside by the markets, a starkly different reaction from the president’s previous delay of the same deadline on Monday. That announcement generated a massive relief rally in crude oil prices and stocks on the hopes that substantive negotiations would begin shortly, or already had.

But Iran’s rejection of an initial US peace plan on Thursday, along with reports that the administration is considering sending another 10,000 US troops to the region and that Chinese ships trying to transit the Hormuz choke point had turned back, seemed to undercut that message.

“Any further statements by Trump about a deal are white noise to the markets,” market analyst Jim Bianco wrote in a post on LinkedIn on Friday. “Only if the IRANIANS say the talks are going well will it impact markets.”

markets
Luke Kawa

Meta’s energy deal with Entergy boosts AI-linked utilities stocks

Shares of Entergy are soaring on Friday after Meta agreed to fund the creation of seven natural gas-fired power plants to secure energy for its mammoth Hyperion data center project in Louisiana.

The news is also boosting other AI-linked utilities plays, with Constellation Energy, Vistra, and NRG also trading well to the upside on Friday.

In a press release, Entergy said the deal was “structured to ensure Meta pays its full cost of service.” Electricity prices have become a hot-button political issue, with President Trump pushing tech giants to pay their own way” on the costs associated with fueling data centers in a bid to avoid having households shoulder any of this burden.

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Derivatives, LLC, or Robinhood Money, LLC. Futures and event contracts are offered through Robinhood Derivatives, LLC.