Quantum Computing Stocks Plummet Over 30%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 01 2026
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Stock Price Collapse: Shares of IonQ, Rigetti, and D-Wave have plummeted over 30% in 2026, with IonQ down 34%, Rigetti down 32%, and D-Wave facing similar declines, indicating significant market concerns regarding the survival risks of these cash-burning pure-play companies.
- Profitability Disparity: In contrast to these companies, Alphabet and IBM possess profitable core businesses that can indefinitely fund quantum R&D, with Alphabet generating over $400 billion in annual revenue and IBM reporting $67.5 billion last year, showcasing their robust financial backing in the quantum sector.
- Bleak Commercialization Outlook: A recent MIT report suggests that large-scale commercial applications for quantum computing are likely far off, with Morningstar estimating early commercialization could take 5 to 10 years, and general-use quantum computing potentially 20 years away, increasing the survival risk for these companies amid high cash burn rates.
- Investment Strategy Shift: Given the lengthy timeline for quantum commercialization, investors should consider companies that can fund R&D from profitable operations, as Alphabet and IBM offer legitimate quantum exposure without the existential risks associated with extreme valuations of pure-play quantum firms.
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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: 297.390
Low
305.00
Averages
374.25
High
400.00
Current: 297.390
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.
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