Quantum Computing Stock (QUBT) Soars 35% After Announcing First Profit

The stock of Quantum Computing (QUBT) is up 35% on May 16, a day after the company reported its first ever profit and announced that it has completed construction on a foundry.

The New Jersey-based quantum technology company reported earnings per share (EPS) of $0.11, which was far ahead of a loss of -$0.07 expected on Wall Street. Revenue of $39,000 was below the consensus estimate of $300,000 that had been forecast on Wall Street. But investors appear to be focusing on the fact that Quantum Computing has turned profitable.

At the same time, the company said in its earnings release that it completed construction of its Quantum Photonic Chip Foundry in Tempe, Arizona during the quarter and has already received five initial foundry orders. Quantum Computing also secured a $406,000 NASA subcontract and additional quantum machine orders from Delft University in the Netherlands.

Accentuating the Positives

The balance sheet of Quantum Computing also strengthened in Q1 with its cash position increasing to $166.4 million. Management acknowledged that the net income improvement was primarily driven by a non-cash gain, not operational improvements at the company. 

Still, all the positive developments have investors piling back into QUBT stock the day after the company’s latest financial results. It’s a sharp reversal for Quantum Computing, which had experienced a sharp selloff in recent weeks amid questions about the future viability of advanced computing. Even with today’s big gain, QUBT stock is still down 25% on the year.

Is QUBT Stock a Buy?

The stock of Quantum Computing is not widely followed by analysts on Wall Street. So instead we’ll look at the company’s three-month share price performance. As one can see in the chart below, QUBT stock has risen 25.20% in the last 12 weeks.