Investing.com — Quantum (NASDAQ:QMCO) Computing Inc (NASDAQ: QUBT) found itself in the crosshairs of short seller Citron Research. Despite this, the company’s shares rose by 26% today and have seen an increase of 550% in the past month.
Citron Research, a financial analysis and research firm known for its short-selling activism, targeted Quantum Computing in a recent post. The firm was founded by Andrew Left in 2001 and has gained notoriety for its controversial reports on publicly traded companies.
In its critique of Quantum Computing, Citron Research stated, “Small-cap quantum stocks are in a bubble, but $QUBT stands out as the most ridiculous. The numbers tell the story. R&D spending is THE critical indicator in this space: last quarter, $IONQ allocated $33M and $RGTI $12M, modest figures next to tech giants like Google (NASDAQ:GOOGL). Yet $QUBT spent a mere $2M on R&D—a striking mismatch for a company claiming to ‘offer integrated high-performance quantum systems.’ Let’s not forget the issued equity at $2.50 just a month ago. The financials simply don’t align—follow the data.”
The firm is questioning Quantum Computing’s research and development (R&D) spending, which it sees as a critical indicator in the quantum computing space. According to Citron, Quantum Computing’s R&D spending of $2M last quarter is significantly less than other companies in the sector, such as IONQ Inc (NYSE: NYSE:IONQ) and Rigetti Computing (NASDAQ: RGTI), which allocated $33M and $12M respectively. Rigetti Computing was mentioned previously in a negative post by Citron.
Citron also pointed out that Quantum Computing issued equity at $2.50 just a month ago. The firm suggests that these financials do not align with the company’s claim to offer high-performance quantum systems, urging investors to follow the data. Despite Citron’s critique, Quantum Computing’s shares have held onto most gains.
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