Why Quantum Computing Inc. Stock Was Sliding Double Digits Today

Key Points

• QCI raised $500 million in a private placement offering yesterday.

• The move will help fund the company's expansion.

• Follow-on offerings sometimes cause skepticism from investors.

• 10 stocks we like better than Quantum Computing ›

Shares of Quantum Computing Inc. (NASDAQ: QUBT) were sliding today after the development-stage specialist in photonics and quantum optics technology announced a follow-on offering, raising $500 million worth of stock.

Investors sometimes dislike these additional share offerings, as they dilute existing shareholders and show that the company needs a new round of cash.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

As of 11:30 a.m. ET, the stock was down 14.4% on the news.

Image source: Getty Images.

Quantum Computing raises cash

In a press release yesterday, QCI, as the company is also known, said it would sell 26,867,276 shares of common stock in a private placement that was oversubscribed, indicating that demand for new shares exceeded supply.

The offering is set to generate $500 million in gross proceeds before offering expenses, and closes on Sept. 24. The company intends to use the funds to "accelerate commercialization efforts, strategic acquisitions, expand sales, and engineering personnel, working capital, and general corporate purposes."

What it means for QCI

The fundraise isn't a negative thing for the quantum stock, and such a move is typical for early-stage growth stocks. It also makes sense for the company to tap into the additional value of its equity after the stock has gained more than 2,000% over the last year.

QCI finished the second quarter with $348.8 million in cash, and it should be well capitalized after the follow-on offering.

However, the company is on track to generate less than $1 million in revenue this year. Given that, the pullback in the stock seems reasonable, as a proper valuation of the stock is anybody's guess at this point, and there are still high expectations baked in at a market cap of $3.2 billion.

Should you invest $1,000 in Quantum Computing right now?

Before you buy stock in Quantum Computing, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Quantum Computing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $661,694!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,082,963!*

Now, it’s worth noting Stock Advisor’s total average return is 1,067% — a market-crushing outperformance compared to 190% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 22, 2025

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.