Rising Quantum Computing Shares Explained
Quantum Computing Stock Soars as Lake Street Capital Markets Backs First-Mover Advantage
Quantum Computing Inc., a company at the forefront of the rapidly growing quantum computing market, has seen its stock surge for a fourth consecutive day, up 22.2% through 9:55 a.m. ET. This uptrend is set to continue, as the stock is on course to end the week up closer to 32%.
Lake Street Capital Markets, an investment bank, has called Quantum Computing a compelling way to participate in the quantum computing market. Analyst Maxwell Michaelis, who joined the firm, initiated coverage of Quantum Computing with a buy rating. This rating was accompanied by a price target of $24 for the stock.
Despite the current gains, it's important to note that Quantum Computing has almost no revenue as of now. In fact, the company's revenue in 2021 was $373,000, and it has only collected $100,000 so far in 2022.
Michaelis' buy recommendation for Quantum Computing is based on a prediction of a dramatic increase in revenue in 2026 and 2027. However, revenue for Quantum Computing is expected to fall by half in 2025. The surge in revenue predicted by Michaelis should be easy to spot in 12 months.
Lake Street Capital Markets believes that Quantum Computing has a first-mover advantage in the quantum computing market. They argue that the company has a long runway for growth, acknowledging that quantum computing is still in its early stages.
It's worth noting that the current stock gains for Quantum Computing may be driven more by momentum trading than long-term investment. The article does not provide any new information about Quantum Computing's price target or stock performance beyond the current gains.
Maxwell Michaelis, the analyst behind the buy recommendation, was hired by Lake Street Capital Markets, but the exact person who hired him is not publicly specified. He published his analysis on Quantum Computing Inc. in October 2022.
In conclusion, while Quantum Computing currently has minimal revenue, Lake Street Capital Markets sees potential for significant growth in the future. The company's first-mover advantage, coupled with the analyst's bullish predictions, have sparked investor interest, driving the stock price upwards. However, it's crucial for investors to understand the risks associated with momentum trading and the early stage of the quantum computing market.
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