Quantum Computing Stock Faces Sharp Reversal After Analyst Downgrade

Bonisiwe Shabane

-Jan 2, 2026, 7:27 PM

quantum computing stock faces sharp reversal after analyst downgrade

Johnson & Johnson shares are trading near record highs, yet major institutional investors are sending mixed signals... Quantum Computing Inc. (NASDAQ:QUBT - Get Free Report)'s stock price dropped 4.6% on Tuesday after Ascendiant Capital Markets lowered their price target on the stock from $40.00 to $25.00. Ascendiant Capital Markets currently has a buy rating on the stock. Quantum Computing traded as low as $11.58 and last traded at $11.73. Approximately 16,174,254 shares were traded during mid-day trading, a decline of 41% from the average daily volume of 27,251,102 shares.

The stock had previously closed at $12.29. Several other equities research analysts have also recently weighed in on the stock. Cantor Fitzgerald reaffirmed a "neutral" rating and issued a $15.00 price target on shares of Quantum Computing in a research report on Thursday, December 18th. Wall Street Zen upgraded Quantum Computing from a "strong sell" rating to a "hold" rating in a report on Saturday, November 22nd. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Quantum Computing in a research report on Monday, December 15th. Wedbush initiated coverage on Quantum Computing in a research report on Wednesday, December 17th.

They issued a "neutral" rating and a $12.00 price target for the company. Finally, Lake Street Capital dropped their price objective on Quantum Computing from $24.00 to $16.00 and set a "buy" rating on the stock in a research report on Monday, November 17th. Two analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $17.00. A number of institutional investors have recently bought and sold shares of QUBT. Vanguard Group Inc.

grew its stake in shares of Quantum Computing by 24.0% during the 1st quarter. Vanguard Group Inc. now owns 5,191,404 shares of the company's stock worth $41,531,000 after purchasing an additional 1,004,675 shares during the period. Charles Schwab Investment Management Inc. increased its holdings in Quantum Computing by 66.4% in the first quarter. Charles Schwab Investment Management Inc.

now owns 50,878 shares of the company's stock valued at $407,000 after buying an additional 20,305 shares in the last quarter. Deutsche Bank AG purchased a new position in shares of Quantum Computing in the 1st quarter valued at about $78,000. Swiss National Bank acquired a new position in Quantum Computing in the 1st quarter worth about $1,806,000. Finally, AlphaQuest LLC purchased a new position in Quantum Computing during the first quarter worth approximately $170,000. 4.26% of the stock is currently owned by institutional investors and hedge funds. The company has a market capitalization of $2.63 billion, a price-to-earnings ratio of -19.23 and a beta of 3.81.

The firm has a fifty day simple moving average of $13.34 and a 200 day simple moving average of $16.13. Quantum Computing (NASDAQ:QUBT - Get Free Report) last announced its earnings results on Friday, November 14th. The company reported ($0.05) earnings per share for the quarter, hitting the consensus estimate of ($0.05). The business had revenue of $0.38 million for the quarter, compared to analyst estimates of $0.12 million. Daily stocks & crypto headlines, free to your inbox By continuing, I agree to the Market Data Terms of Service and Privacy Statement

Shares of quantum computing firms took a significant hit in aftermarket trading on Tuesday, following remarks from NVIDIA CEO Jensen Huang that cast doubt on the near-term viability of the technology. Companies like IONQ, D-Wave Quantum, QuantumSi, Quantum Computing Inc., and Rigetti Computing saw stock declines ranging from 3% to 15%. This downturn came on the heels of a broader sell-off in the tech sector, which has been under pressure in recent weeks. During an investor meeting, Huang made it clear that he views quantum computing as still being in its infancy, suggesting that it could take at least 20 years before the technology becomes genuinely useful. His comments, made in response to a question from Evercore analyst Mark Lipacis, were striking. Huang noted that if one were to estimate a timeline for practical quantum computers, 15 years might be overly optimistic, while 30 years could be too conservative.

“But if you picked 20, I think a whole bunch of us would believe it,” he stated, underscoring the uncertainty surrounding the timeline for quantum advancements. The skepticism from Huang is not without merit. Quantum computing, which leverages the principles of quantum mechanics to tackle complex computational problems, faces numerous physical challenges. The intricacies of manipulating quantum phenomena are daunting, and Huang emphasized that quantum technology cannot address every problem. He pointed out that classical computing remains essential for error correction, a process that is vital for quantum systems to function effectively. This interdependence highlights a significant hurdle: quantum computing cannot yet operate independently of classical systems, limiting its immediate applicability.

Despite Huang’s cautious outlook, advocates of quantum computing continue to champion its potential as a transformative force in the tech landscape. Recent announcements, such as Google’s claim of overcoming a pivotal challenge with a new quantum chip, have sparked excitement. However, even with such advancements, experts agree that practical implementation is still years away. The gap between theoretical breakthroughs and real-world applications remains a chasm that the industry must navigate. The reaction of the market reflects a broader sentiment of uncertainty surrounding the future of quantum computing. Investors, already jittery from a tech sector slump, appear to be recalibrating their expectations based on Huang’s comments.

The reality is that while quantum computing holds promise, the path to practical utility is fraught with challenges that are not easily surmountable. Oakland, CA – November 13, 2025 – Rigetti Computing (NASDAQ: RGTI), a prominent player in the nascent quantum computing sector, saw its share price plummet by approximately 11% today, extending a week-long losing streak... This significant downturn follows a series of analyst downgrades and a disappointing third-quarter earnings report, signaling growing investor skepticism regarding the company's valuation and the broader commercial viability of quantum computing in the near... The sharp decline underscores a critical juncture for Rigetti and the wider quantum industry. As the market grapples with the gap between ambitious technological roadmaps and tangible financial performance, the recent events surrounding Rigetti could prompt a re-evaluation of high-growth, pre-profit companies in emerging tech sectors. The current volatility for Rigetti Computing began to escalate in early November with a series of critical reassessments from financial analysts.

On November 3rd, B. Riley Securities initiated a notable shift in its stance, downgrading Rigetti from a "Buy" to a "Neutral" rating. While B. Riley simultaneously raised its price target on RGTI shares from $35 to $42, the rationale behind the downgrade centered on concerns that the stock's explosive rally—a staggering 3,499% over the past year and 190%... government funding authorizations, a crucial revenue stream for the company. This initial downgrade saw RGTI shares slip by 10.26% on the day.

Echoing similar sentiments, Raymond James followed suit around November 10th, downgrading RGTI stock from "Buy" to "Hold." Their reasoning largely aligned with B. Riley's, citing persistent government funding delays and the belief that much of the stock's future potential was already factored into its lofty price. The negative sentiment was further compounded on November 11th when a Seeking Alpha analyst issued a "Sell" rating, pointing to Rigetti's weak financials, characterized by declining revenue and widening losses, an "extremely high valuation"... The company's third-quarter fiscal 2025 results, released after market close on Monday, November 10th, acted as another significant catalyst for the negative market reaction. While Rigetti technically surpassed EPS estimates by reporting a non-GAAP net loss of $0.03 per share (against an expected $0.05), it significantly missed revenue expectations, posting only $1.9 million against a consensus estimate of... This revenue shortfall, an 18% decline year-over-year, contributed to shares falling 2.4% in after-hours trading on Monday.

The losses extended into the week, with the stock plunging over 8% on Tuesday, November 11th. By Wednesday, November 12th, Rigetti's shares were down another 9.9% after B. Riley further cut its price target to $35 from $42, albeit maintaining a neutral rating. The cumulative effect culminated in Rigetti's shares closing down 9.87% today, November 13th, at $28.30 per share, extending its losing streak for a fifth consecutive day. Johnson & Johnson shares are trading near record highs, yet major institutional investors are sending mixed signals...

Quantum Computing Stock Faces Sharp Reversal After Analyst Downgrade

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