QUBT Surges 27% Amid Strong Momentum; Caution Advised Due to Overbought Conditions and Weak Fundamentals

Technical Analysis

Quantum Computing, Inc. (QUBT) closed at $21.22 on June 16, 2025, surging 27.22% on high volume of 64.93 million shares, well above its 25.51 million average. The stock demonstrated strong upward momentum, with a daily trading range between $17.20 and $21.70. The Relative Strength Index (RSI) stands elevated at 73, indicating an overbought condition which could signal near-term consolidation or mild pullback pressure. Current price is well above the 50-day ($9.95) and 200-day ($7.08) moving averages, confirming a robust uptrend. The 3-month MACD of 1.87 supports continued bullish momentum. The Average True Range (ATR) of 9.51 reflects significant volatility in recent sessions. Immediate support is at $18.97 with a stop-loss noted near $20.47; no clear resistance level is currently defined due to strong recent price advances.

For the next trading day (June 17, 2025), given the overbought RSI and retracement potential, a slight pullback toward support or a consolidation phase is plausible, with upside momentum likely to resume afterward if volume remains strong. Over the upcoming week, continued volatility with upward bias is expected, particularly given the absence of resistance and ongoing positive sentiment in the quantum computing sector.

Fundamental Analysis

QUBT’s trailing twelve-month EPS is negative at -$0.54, resulting in a negative P/E ratio of -39.30, highlighting that the company remains unprofitable. The discounted cash flow (DCF) intrinsic value per share sits dramatically below current market price at approximately $0.79, indicating that the market is pricing in substantial future growth potential, innovation, or strategic positioning beyond current cash flow fundamentals. The market capitalization stands at approximately $2.99 billion.

The company’s earnings announcement is due on September 30, 2025. Recent bullish sentiment on QUBT shares is largely fueled by sector-level enthusiasm, particularly following NVIDIA CEO comments signaling an inflection point in quantum computing technology adoption. This sentiment has catalyzed sharp price appreciation over recent weeks, with multiple double-digit percentage gains noted.

Long-term investment potential hinges on the company’s ability to transition from its current unprofitable status toward sustainable revenue and earnings growth driven by the burgeoning quantum computing industry. Given the nascent stage of quantum computing, fundamental metrics remain speculative but offer substantial upside if technology commercialization advances as anticipated.

Intrinsic Value and Long-Term Outlook

The gap between intrinsic value ($0.79) and the current market price ($21.22) reflects elevated growth expectations that may not materialize in the near term, rendering the stock volatile and speculative. Long-term capital appreciation will depend heavily on successful product development, commercialization milestones, and broader quantum computing adoption. Institutional interest and market enthusiasm could sustain elevated price levels despite fundamental shortfalls, but downside risk exists if technological or competitive hurdles delay profitability.

Overall Evaluation

QUBT is characterized by strong technical momentum and sector-driven bullish sentiment but faces fundamental challenges underscored by a negative EPS and a DCF value far below market pricing. The stock exhibits classic growth-stage volatility with substantial upside opportunity paired with higher risk. From a purely analytical standpoint, QUBT fits the profile of a Hold candidate: overbought in the short term with potential near-term price corrections, yet maintaining long-term growth prospects that justify retaining a position for investors aligned with the quantum computing thematic. Selling prematurely could forgo upside if positive sector dynamics continue; however, the elevated valuation warrants caution pending execution of key financial milestones.