Quantum Computing Stocks Rise Despite Citron Research Critique

Investing.com -- Quantum Computing Inc (NASDAQ: QUBT) has come under the scrutiny of short seller Citron Research. Nevertheless, the company's shares rose by 26% today and have increased by 550% over the past month. The financial analysis and research firm known for short-selling activism, Citron Research, recently targeted Quantum Computing in a post. Founded by Andrew Left in 2001, the firm is notorious for its controversial reports on publicly traded companies. In its critique of Quantum Computing, Citron stated: "Small-cap quantum stocks are in a bubble, but $QUBT stands out as the most absurd. The numbers tell the story. R&D spending in this field is a CRITICAL indicator: last quarter, $IONQ allocated $33 million and $RGTI allocated $12 million, which pales in comparison to tech giants like Google. However, $QUBT spent only $2 million on R&D—this is a striking discrepancy for a company that claims to provide 'integrated high-performance quantum systems.' Let’s not forget the stock was issued at $2.50 just a month ago. The financials simply don’t add up—follow the data." The firm questions the research and development (R&D) expenditures of Quantum Computing, which it views as a critical indicator in the quantum computing space. According to Citron, Quantum Computing's $2 million R&D spending last quarter is significantly lower compared to other companies in the sector. For instance, IONQ Inc (NYSE: IONQ) allocated $33 million and Rigetti Computing (NASDAQ: RGTI) allocated $12 million. Rigetti Computing was also mentioned in Citron's negative disclosure previously. Citron also pointed out that Quantum Computing issued stock at the $2.50 level just a month ago. The firm suggested that these financial figures do not align with the company's claim of delivering high-performance quantum systems, urging investors to follow the data. Despite Citron's criticism, Quantum Computing's shares have retained most of their gains.