Even by the standards of Wednesday's downbeat stock market, Quantum Computing (QUBT +1.96%) was an outlier, and not in a good way. Following news of a C-suite move and the publication of a new analyst note on quantum stocks in general, investors aggressively traded out of Quantum Computing's shares. This left them with a more than 9% loss in value on the day.
A lukewarm take
That morning, Quantum Computing announced that it would remove the "interim" tag from CEO Yuping Huang, making him the company's non-transitory leader. This change is to take effect on Jan. 1 next year. It took some time for the company to make the move, as Huang was named interim CEO back in April.
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In its press release announcing the change, Quantum Computing stated that it comes at a crucial time, as the company "moves from prototype development and small-batch manufacturing toward industrial-scale manufacturing production."
Also that morning, influential tech industry-watcher Wedbush initiated coverage of the quantum sector. It is now tracking four quantum stocks, and tagged three of them as buys. Unfortunately for Quantum Computing, it wasn't among this trio, as Wedbush feels it's only a neutral.
NASDAQ: QUBT
Key Data Points
Too much sharing
That wasn't altogether surprising, as Quantum Computing has been quite the laggard as a stock, even within the high-volatility quantum sector. While the photonic integrated circuits in which it specializes have significant business potential, the company's thin revenue indicates difficulty monetizing this. A dilutive series of secondary share issues hasn't helped the situation.
Given all that, I'd be inclined to agree with Wedbush in its assessment. In fact, I'd probably go so far as to avoid Quantum Computing stock for now.
