Quantum Computing stock falls as firm’s losses soar

Takeaways

• Quantum Computing's fourth-quarter loss soared on expenses related to a merger three years ago, and shares sank.
• Operating costs have also increased by 35%.
• The photonic and quantum optics product maker's shares took off earlier this week on positive news from another firm in the sector, D-Wave Quantum.

Quantum Computing’s (QUBT) stock dropped Friday, a week after the high-tech company reported a wider fourth-quarter loss.

Shares of D-Wave Quantum soared in value earlier this week, when the company announced that it had developed a quantum machine that outperformed supercomputers for certain tasks. 

Quantum Computing announced a net loss per share of $0.47 after the bell rang on Thursday. This is more than five-times its loss per share last year. Revenue dropped by 17% to $62,000. 

The company said that the larger loss is mainly due to costs related to the QPhoton merger in June 2022. In addition, operating expenses grew 35% to $8.9 million on "higher non-cash employee-based expenses, including stock-based compensation, and increased depreciation expense for production equipment installed at the Company's TFLN chip foundry in Tempe, AZ."

Quantum Computing shares fell 14% when the markets opened on Friday, but pared their losses and were down by 2% 30 minutes after opening bell. They have lost approximately three-quarters since December, when they reached their all-time high.