Market Experts Express Caution on Quantum Computing Inc. Stock

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Shares of Quantum Computing Inc. (NASDAQ: QUBT) are facing significant downward pressure following a major corporate acquisition and the release of new analyst coverage. Investor sentiment has been unsettled by a neutral initiation from Wedbush Securities and the company's $110 million cash purchase of another firm. The equity declined by more than 5% last Friday alone, culminating in a weekly loss of 14.2%.

The recent sell-off appears driven by a confluence of strategic and analytical developments. As the weekend approached, Wedbush Securities commenced coverage on the quantum computing firm, assigning it a Neutral rating alongside a 12-month price target of $12.00.

This cautious stance is particularly notable when contrasted with the analyst's view of the competitive landscape. In the same research note, Wedbush awarded Outperform ratings to rivals IonQ (price target: $60) and Rigetti Computing (price target: $35), suggesting a less favorable near-term risk-reward assessment for QUBT.

Concurrently, the market is digesting Quantum Computing Inc.'s latest strategic move: the acquisition of Luminar Semiconductor for $110 million in cash. While the company reported a solid cash position of $352 million as of the end of September 2025, the substantial expenditure raises questions about capital allocation and the timeline for a return on investment. Investors seem to be pricing in the risks associated with integrating Luminar's photonic technology.

Operating in a High-Hype Sector

The analyst's reserved outlook becomes clearer within the context of the broader quantum computing rally. Despite the sector benefiting from massive capital inflows, QUBT is notably lagging its peers.

• Sector Performance: QUBT's struggles contrast sharply with the performance of competitor Rigetti Computing (RGTI), whose share price has surged over 3,000% since 2023.
• Validation Gap: The industry is increasingly defined by validation from government agencies. Competitors like IonQ have been selected for prestigious initiatives, such as a DARPA program. Similar headline-grabbing endorsements are currently absent for Quantum Computing Inc.
• Strategic Moves: The company is not standing still, however. It secured an order for quantum security solutions from a major U.S. bank in Q3 2025. Furthermore, the Luminar acquisition is a long-term play aimed at securing the supply chain for key components and achieving economies of scale.

Path Forward: Integration and Key Price Levels

The coming weeks will be critical for the company to stabilize investor confidence. The stock is currently trading around $10.89. A meaningful trend reversal would likely require a sustained move above the $12.00 threshold. The market is adopting a wait-and-see approach, seeking concrete evidence that the Luminar deal will accelerate growth in 2026. Future communications regarding the finalization of the transaction and the progress of integration efforts will be pivotal.