Why Arqit Quantum Stock Plummeted This Week

Arqit Quantum (NASDAQ: ARQQ) stock sank over the last week of trading as investors moved out of speculative growth stocks. The quantum cryptography company's share price sank 18.9% across the stretch.

Arqit announced the launch of a new software platform this week, but the debut wasn't enough to stop its share price from getting hit with a big pullback. Macroeconomic and geopolitical concerns shaped trading for quantum computing and artificial intelligence (AI) companies, and this backdrop resulted in substantial sell-offs for the stock.

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Arqit plummeted as investors fled quantum stocks

Investors sold out of highly growth-dependent quantum computing stocks in response to concerns that the Federal Reserve will not be issuing another interest rate cut before the year is out. The government shutdown resulted in some key unemployment and inflation data not being compiled for reports, and that means that the Fed has less data to work with in assessing potential rate cuts. Following the pullback, Arqit stock is now down 29% across 2025's trading.

What's next for Arqit Quantum?

On Tuesday, Arqit announced the launch of SKA Central Controller -- a network security platform designed to provide encryption that can stand up to quantum-based attacks. It looks as if the new platform could play a significant role in powering the company's growth.

For the current fiscal year, Arqit is guiding for sales of roughly $1.2 million -- up from the roughly $530,000 in sales it guided for in the last fiscal year. While sales are expected to more than double this year, the company's $394.5 million market cap means some strong growth is already priced into the stock.

Keith Noonan 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.