"While the S&P 500 gained +1.13% and the Nasdaq 100 added +1.14% during last week (February 17-20), quantum computing stocks mostly sat out the rally. Four of the five names tracked here finished in the red, with only Rigetti managing a modest gain. The sector continues to trade on sentiment, and that sentiment continues to decline as investors flee to industries like consumer staples."
"First, insider selling. A Motley Fool analysis flagged that insiders across IonQ, Rigetti, and D-Wave have net-sold roughly $615 million in shares over the past year, with minimal insider buying. When the people with the most information are consistently selling, the market notices. IonQ's own insider data shows 10 recent insider transactions, net direction: selling. Second, the valuation overhang. IonQ trades at a market cap of $16 billion against trailing revenue that, even if Q4 matches Q3's pace, will come in well"
The S&P 500 and Nasdaq 100 rose last week while most quantum computing stocks underperformed, with four of five tracked names declining and only Rigetti showing a gain. IonQ led the sector weakness, falling 6.48% for the week, roughly 34% over one month, and about 29% year-to-date, closing at $31.90. Traders positioned cautiously ahead of IonQ's Q4 2025 earnings due February 25, with consensus at -$0.47 EPS and $40.38 million revenue and prediction markets pricing a 76% chance of a beat. Insiders across IonQ, Rigetti, and D-Wave net-sold roughly $615 million over the past year. IonQ's market capitalization near $16 billion contrasts sharply with trailing annual revenue likely well under $150 million, creating a high price-to-sales multiple and ongoing valuation pressure, even as analysts project substantial upside.
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