Arqit Hasn't Earned The Benefit Of The Doubt, Yet
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The Techie4.08K FollowersFollow5ShareSavePlay(8min)CommentsSummaryArqit Quantum remains a sell in my books as hype fades and fundamentals fail to justify current valuation.Arqit underperforms quantum peers, with a 25.4% YTD decline and no evidence of sustainable demand or profitability.FY2025 revenue was $530K, missing consensus, and FY2026 guidance of $1.2M is insufficient versus a $2.5M monthly cash burn.ARQQ trades at 69x forward sales, with negative returns and no credible near-term catalyst for a re-rating.I hereon share my sentiment on Arqit and why I see more downside ahead. Dhaqi Ibrohim/iStock via Getty Images Arqit Quantum (ARQQ) has been a stock I’ve consistently been bearish on since early January. Well, my take on Arqit hasn’t changed, even after a double-digit pullback year to date, down over 23%. I think the hype aroundThis article was written byThe Techie4.08K FollowersFollowI’m a retired Wall Street PM specializing in TMT; since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my service to revolve around is momentum.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You