Why quantum computing stock is plummeting this week - MSN

After sliding more than 6% last week, shares of Quantum Computing (QUBT 1.81%) are continuing their downward trajectory this week. In addition to the quantum computing company announcing an acquisition, an analyst's initiation of coverage on Quantum Computing stock -- with an uninspiring take on it -- is providing sufficient fodder for the bears to send the stock lower. According to data provided by S&P Global Market Intelligence, shares of Quantum Computing are down 14.2% from the end of last Friday's market session through the end of trading on Thursday. Image source: Getty Images. The market isn't buying the idea of Quantum Computing's move to grow through acquisition On Monday, Quantum Computing announced its plan to acquire Luminar Semiconductor for $110 million in cash. In the press release addressing the purchase, Quantum Computing stated: "The acquisition will bring QCi [Quantum Computing] a portfolio of core photonic technologies, patents, and a highly experienced team of engineers and scientists that will accelerate QCi's roadmap while continuing to support and grow LSI's [Luminar Semiconductor's] established customer base." CollapseQUBTNASDAQ: QUBTQuantum ComputingToday's Change(-1.81%) $-0.22Current Price$11.92QUBTYTD1w1m3m6m1y5yPriceVS S&PKey Data PointsMarket Cap$2.7BDay's Range$11.72 - $12.0252wk Range$4.37 - $25.84Volume50KAvg Vol30MGross Margin-77783.88% At the end of September, Quantum Computing had $352 million in cash on its balance sheet. Investors are likely unhappy with the acquisition, as they surely preferred the company to hold onto its cash, given that it's currently generating minimal revenue. Adding to investors' disappointment, Wedbush initiated coverage on Quantum Computing stock this week. In addition to assigning the stock a neutral rating, Wedbush set a $12 price target on the stock.Advertisement Should investors buy Quantum Computing stock on the dip? Despite the decline this week, investors interested in exposure to the quantum computing industry would be wise to keep an eye on Quantum Computing stock. The company is making progress in demonstrating to the market the validity of its technology's applications -- paving the way toward generating more robust revenue. In the third-quarter 2025, Quantum Computing a purchase order from a major U.S. bank for its quantum security solutions.