Two Quantum Computing Names Are Exploding as the Sector Catches Fire
Shares of D-Wave Quantum and Quantum Computing Inc are breaking out as this cutting-edge technology sees investors pouring in.
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Almost two weeks ago, I wrote to you about two new long positions that I had added to my most active portfolio. I speak of D-Wave Quantum Inc (QBTS) and Quantum Computing Inc QUBT.
These names have been volatile. They have sold off since I have been in them, where fortunately I added to my positions, but not in the kind of size that maybe I should have. As I wrote to you then, quantum computing may or may not be the next best thing and these particular stocks may or may not be the best ideas in that space. What I sought were stocks that were low-priced enough on a per-share basis that gave me long-side exposure to what I think will be the next big idea.
First came the internet, then came big data, then the cloud, then generative artificial intelligence and now, quantum computing. Is it possible that quantum computing only energizes and enhances artificial intelligence, while making use of big data, the data center and the internet? Of course. What I think I know is that technology is getting way out ahead of us humans at this point and if we don't play the game, we may be left too far behind to ever catch up. Evolve or perish? Something like that.
"The Fly" ran a headline on Friday morning in which several names were mentioned as having unusually active option classes open as of this date. Among quantum computing names, D-Wave Quantum was alone among them. There has been no recent hard news in either of these names since I wrote about them last.
D-Wave Quantum (QBTS)
The name is up 31% today, exploding out of a pennant that closed in mid-October, benefitting from a golden cross in late November. The relative strength index and the daily MACD are clearly overextended, but I am not taking profits until I see where this goes.
Quantum Computing Inc (QUBT)
This one is up 17% today, also exploding out of a pennant that closed in mid-October, also benefitting from a golden cross in early, not late, November. The relative strength index and the daily MACD are clearly overextended here too.
I don't even have target prices for these names yet, so we'll just have to see if any portion of these spikes in price can be held. Fifteen percent of the float in QUBT and 12% of the float in QBTS are currently or were recently held in short positions. Obviously, there is something of a squeeze underway. We'll soon find out just how much of this action was organic in nature.
At the time of publication, Guilfoyle was long QBTS, QUBT equity.
