Remember Andrew Left? The guy who made GameStop bros cry back in 2021? Well, he’s back with another hot take, and this time he’s got quantum computing stocks in his crosshairs.
While everyone’s losing their minds over quantum stocks (Rigetti Computing up 78%, D-Wave Quantum up 214% this year), Left is over here placing bets that these rockets are about to crash back to Earth. And honestly? His reasoning might make you think twice before FOMOing into the quantum craze.
Here’s the thing about quantum computing that nobody wants to talk about: it’s stupidly expensive to develop, and the competition is basically Google with infinite money. Left learned this the hard way after actually meeting with Rigetti’s management team.
“The commercialization of it was like the most uncertain thing you ever heard of,” Left said about his chat with Rigetti execs. Translation: they have no clue when (or if) they’ll actually make money from this tech.
But wait, there’s more! Left noticed something interesting in the fine print – Rigetti insiders have been dumping their shares faster than you can say “quantum entanglement.” When the people running the company are selling, that’s usually not a great sign for us regular folks holding the bag.
The real kicker? Google just dropped some major quantum breakthroughs that make smaller players like Rigetti look like they’re bringing a calculator to a supercomputer fight. Left’s basically saying: why bet on the scrappy underdog when the tech giant with unlimited R&D budget is in the same race?
Now, Left isn’t completely anti-quantum. He’s actually bullish on one company: Infleqtion (through Churchill Capital Corp). Why? Because instead of trying to out-Google Google, they’re playing the smart game – building quantum tech that works WITH Nvidia’s ecosystem. It’s like being the guy who sells pickaxes during a gold rush instead of digging for gold yourself.
“Infleqtion has customers, revenue, and NVIDIA validation. Rigetti has dilution and press releases,” Left wrote on X. Ouch. That’s the kind of burn that leaves marks.
Left also shut down any dreams of government bailouts for quantum companies. Despite some chatter about Trump potentially taking equity stakes in quantum firms, Left’s not buying it: “Donald Trump’s not taking US money and bailing out CEOs that sell stock.”
Look, quantum computing is probably the future. But “probably” and “eventually” don’t pay the bills today. Left’s bet is simple: most of these quantum stocks are priced for perfection in a world where perfection is still decades away.
The lesson here isn’t to avoid all quantum stocks, but maybe don’t mortgage your house for companies that are still figuring out how to turn quantum physics into actual profits. Sometimes the smartest play is waiting for the hype to cool down before jumping in.
After all, in the stock market, being early is often indistinguishable from being wrong.