It's a rough morning for the quantum computing crowd. The pure-play stocks in this futuristic sector are getting hit hard in Tuesday's premarket, sliding right alongside a broader market that's flashing red. Shares of IonQ Inc. (IONQ), Rigetti Computing Inc. (RGTI), and D-Wave Quantum Inc. (QBTS) are all pointing lower.
The weakness isn't happening in a vacuum. S&P 500 futures are down 1.35%, and Nasdaq futures have shed 1.77%. When the tide goes out like this, it often hits growth and speculative names the hardest—and quantum computing stocks, promising revolutionary technology that's still years from mainstream profitability, fit that bill perfectly.
Short Sellers Are Adding to the Pressure
If you're wondering why the drop seems particularly sharp, you might want to look at the short sellers. Elevated short interest across the quantum space could be acting like a weight, pulling prices down faster.
According to market data, short interest in IonQ rose from 79.28 million to 82.81 million shares in the last reporting period. That puts 23.31% of its float in the hands of short sellers. At the stock's average daily volume of 22.57 million shares, it would take roughly 3.67 days for all those shorts to buy back their positions—a metric known as the days-to-cover ratio.
Over at Rigetti, the story is similar. Short interest climbed from 45.46 million to 51.73 million shares, representing 15.74% of its float, with a 1.7-day cover ratio.
D-Wave is the slight outlier here. Its short interest actually declined from 57.24 million to 52.69 million shares. That still leaves 14.72% of its float short, with a 1.85-day cover ratio, but at least the trend wasn't pointing up.
All Eyes on Rigetti's Earnings Tomorrow
The immediate focus for the group shifts to Rigetti, which is scheduled to report its fourth-quarter earnings on Wednesday. Analysts are estimating a loss per share of four cents on revenue of $2.46 million.
Last quarter, Rigetti managed to beat loss per share expectations—posting a loss of three cents against an estimated loss of four cents—but its revenue of $1.95 million missed the $2.26 million estimate by 14%. Investors will be watching to see if the company can tighten that gap.
