Analysis of Quantum Computing Stocks and Investment Trends
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GOOGL?
Source: Fool
- Investor Skepticism: Despite impressive returns from quantum computing stocks in 2025, with IonQ, Rigetti Computing, and D-Wave Quantum leading the way, Wall Street's investment in these pure-play quantum stocks remains limited, primarily driven by passive ETF and index fund inflows rather than active hedge fund confidence.
- Financial Concerns: Rigetti reported $1.95 million in revenue last quarter, while IonQ faced an adjusted loss of nearly $49 million, highlighting the significant financial pressures these companies face in their quest for commercialization, with IonQ raising $2 billion in equity to extend its runway.
- Dominant Market Player: Wall Street's real investment lies in Alphabet (Google's parent company), where investors are not buying due to quantum computing but rather because Alphabet's diversified business and strong cash flow make it a reliable long-term wealth builder, generating over $73 billion in free cash flow last year.
- Challenges of Technological Maturity: Real-world applications of quantum computing may take a decade or more to materialize, while Alphabet can afford to wait for technology to mature, contrasting with IonQ and Rigetti, which face survival pressures, reflecting a cautious market outlook on the future of quantum computing.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 303.330
Low
305.00
Averages
374.25
High
400.00
Current: 303.330
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
OpenAI Faces Multiple Pressures and Competition
- Intensifying Chinese Competition: Sam Altman, CEO of OpenAI, acknowledged at the India AI Impact Summit that Chinese tech firms' advancements in AI are “remarkable,” indicating increasing competitive pressure on OpenAI amid its upcoming $100 billion funding round and $830 billion valuation.
- Price War Underway: Chinese firm Zhipu AI charges $3 per month for AI access compared to OpenAI's $20 for ChatGPT Plus, highlighting OpenAI's disadvantage in pricing strategy, which could lead to a further decline in its market share.
- Model Competition Disadvantage: Market traders predict an 87% chance that Google's Gemini 3.5 model will be released by June 30, increasing competitive pressure on OpenAI, especially as its best model ranks far below those of Google and Anthropic, potentially impacting its IPO plans.
- Advertising Revenue Strategy: Altman confirmed that ads will be introduced to ChatGPT, and although plans are in early stages, in the context of an intensifying price war, ad revenue could become a vital path to profitability for OpenAI, reflecting the urgency in its revenue model.
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Analysis of Quantum Computing Stocks and Investment Trends
- Investor Skepticism: Despite impressive returns from quantum computing stocks in 2025, with IonQ, Rigetti Computing, and D-Wave Quantum leading the way, Wall Street's investment in these pure-play quantum stocks remains limited, primarily driven by passive ETF and index fund inflows rather than active hedge fund confidence.
- Financial Concerns: Rigetti reported $1.95 million in revenue last quarter, while IonQ faced an adjusted loss of nearly $49 million, highlighting the significant financial pressures these companies face in their quest for commercialization, with IonQ raising $2 billion in equity to extend its runway.
- Dominant Market Player: Wall Street's real investment lies in Alphabet (Google's parent company), where investors are not buying due to quantum computing but rather because Alphabet's diversified business and strong cash flow make it a reliable long-term wealth builder, generating over $73 billion in free cash flow last year.
- Challenges of Technological Maturity: Real-world applications of quantum computing may take a decade or more to materialize, while Alphabet can afford to wait for technology to mature, contrasting with IonQ and Rigetti, which face survival pressures, reflecting a cautious market outlook on the future of quantum computing.
See More
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- Stock Price Volatility Impact: D-Wave Quantum's stock surged 202.6% over the past year but faced extreme volatility, peaking at $46.75 per share last October before plummeting to $26.15, illustrating the high-risk nature of quantum computing stocks.
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- Intensifying Chinese Competition: Sam Altman, CEO of OpenAI, acknowledged at the India AI Impact Summit that Chinese tech firms' advancements in AI are “remarkable,” indicating increasing competitive pressure on OpenAI amid its upcoming $100 billion funding round and $830 billion valuation.
- Price War Underway: Chinese firm Zhipu AI charges $3 per month for AI access compared to OpenAI's $20 for ChatGPT Plus, highlighting OpenAI's disadvantage in pricing strategy, which could lead to a further decline in its market share.
- Model Competition Disadvantage: Market traders predict an 87% chance that Google's Gemini 3.5 model will be released by June 30, increasing competitive pressure on OpenAI, especially as its best model ranks far below those of Google and Anthropic, potentially impacting its IPO plans.
- Advertising Revenue Strategy: Altman confirmed that ads will be introduced to ChatGPT, and although plans are in early stages, in the context of an intensifying price war, ad revenue could become a vital path to profitability for OpenAI, reflecting the urgency in its revenue model.
See More
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- Investor Skepticism: Despite impressive returns from quantum computing stocks in 2025, with IonQ, Rigetti Computing, and D-Wave Quantum leading the way, Wall Street's investment in these pure-play quantum stocks remains limited, primarily driven by passive ETF and index fund inflows rather than active hedge fund confidence.
- Financial Concerns: Rigetti reported $1.95 million in revenue last quarter, while IonQ faced an adjusted loss of nearly $49 million, highlighting the significant financial pressures these companies face in their quest for commercialization, with IonQ raising $2 billion in equity to extend its runway.
- Dominant Market Player: Wall Street's real investment lies in Alphabet (Google's parent company), where investors are not buying due to quantum computing but rather because Alphabet's diversified business and strong cash flow make it a reliable long-term wealth builder, generating over $73 billion in free cash flow last year.
- Challenges of Technological Maturity: Real-world applications of quantum computing may take a decade or more to materialize, while Alphabet can afford to wait for technology to mature, contrasting with IonQ and Rigetti, which face survival pressures, reflecting a cautious market outlook on the future of quantum computing.
See More
Trybe Capital Initiates Position in D-Wave Quantum
- New Investment Disclosure: On February 17, 2026, Trybe Capital Management LP disclosed a new position in D-Wave Quantum by purchasing 1,936,922 shares valued at approximately $50.65 million, indicating confidence in the quantum computing sector.
- Asset Allocation Insight: This investment represents 7.25% of Trybe Capital's 13F reportable assets as of December 31, 2025, highlighting the firm's strategic positioning in quantum computing, which may enhance the risk-return profile of its overall portfolio.
- Stock Price Volatility Impact: D-Wave Quantum's stock surged 202.6% over the past year but faced extreme volatility, peaking at $46.75 per share last October before plummeting to $26.15, illustrating the high-risk nature of quantum computing stocks.
- Industry Outlook: While quantum computing technology has the potential to transform the tech industry, the uncertainty surrounding D-Wave Quantum's commercial products in the current market raises questions, as Trybe Capital's investment could yield outsized returns but also carries significant risks.
See More
TenCore Partners Increases Stake in MercadoLibre Stock
- Increased Holdings: TenCore Partners disclosed a purchase of 2,025 shares of MercadoLibre in Q4 2025, valued at approximately $4.25 million, indicating confidence in the Latin American e-commerce giant despite competitive pressures.
- Asset Management Proportion: This acquisition raised MercadoLibre's share to 6.16% of TenCore Partners' 13F reportable AUM, reflecting its significance in the investment portfolio and potentially influencing future investment decisions.
- Financial Performance: MercadoLibre reported a 37% year-over-year revenue growth in the first nine months of 2025, but rising costs limited net income growth to just 13%, indicating challenges in profitability that could affect stock performance.
- Market Outlook: Despite competitive pressures from Amazon and others, improving economic conditions in Argentina and Venezuela could provide opportunities for MercadoLibre's e-commerce business, suggesting that TenCore's increased investment may yield returns in the future.
See More
TenCore Partners Increases MercadoLibre Stake by 2,025 Shares
- Stake Increase: TenCore Partners, LP increased its position in MercadoLibre by 2,025 shares during Q4 2025, with an estimated trade value of $4.25 million, reflecting confidence in the Latin American e-commerce giant.
- Value Growth: By year-end 2025, the value of MercadoLibre's stake rose by $2.80 million, showcasing the dual impact of market price changes and the purchase, thereby enhancing the fund's assets under management.
- Asset Allocation: TenCore Partners held 5,983 shares of MercadoLibre valued at $12.05 million, accounting for 6.16% of the fund's AUM, indicating its significance despite not being in the top five holdings.
- Market Challenges: Although MercadoLibre's revenue grew by 37% in the first nine months of 2025, profit growth was limited to 13% due to increased competition and rising non-performing loans, which may affect TenCore's investment returns.
See More
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- Significant Investment Returns: Bill Ackman's investment in Hilton Hotels, initiated in 2018, has shown remarkable growth, with Hilton's stock up 12.8% year-to-date in 2026 and 22% over the last 52 weeks, indicating strong market performance.
- Increased Share Value: As of the fourth quarter, Ackman, through Pershing Square Capital, owned 3,028,664 shares of Hilton, with a current valuation of $942,701,956.64, reflecting an increase of $72,718,222.64 since the end of the fourth quarter, showcasing robust investment growth.
- Comparison with Tech Stocks: While the Magnificent Seven stocks have generally declined in 2026, Hilton's performance stands out, highlighting its significance in Ackman's portfolio, especially as Meta and Amazon saw declines of 0.8% and 9.5%, respectively.
- Future Growth Potential: Hilton started 2026 on a strong note, closing at $287.25 at the end of last year, up from $248.56 in January 2025, suggesting it may continue to drive overall portfolio gains in the coming months.
See More
