Shares of Quantum Computing Inc (NASDAQ:QUBT) are trading sharply lower Monday morning after the company’s announcement of a $500 million oversubscribed private placement of common stock.
What To Know: The offering, led by several large existing shareholders and a first-time investment from a prominent global alternative asset manager, is priced at the market under Nasdaq rules. The deal is expected to close on or about Thursday.
Upon closing, Quantum Computing’s total cash position is expected to be approximately $850 million. The company plans to use the net proceeds to accelerate commercialization efforts, fund strategic acquisitions and expand its sales and engineering teams.
Monday’s drop suggests that investors may be concerned about the dilutive effect of the 26,867,276 new shares being issued.
Technical Momentum: QUBT’s current price of $19.43 reflects a significant daily decline of 16.47%, indicating bearish momentum. The stock is trading above its 50-day moving average of $16.37, suggesting potential support at this level.
Volume & Intraday: The trading volume of 25,814,164 shares Monday morning, exceeding the average of 21,075,949, indicates heightened activity and investor interest during this volatile session. The significant volume on the decline suggests that sellers are currently in control.
Benzinga Edge Rankings: Notably, despite today’s sharp decline, Benzinga Edge data shows QUBT with an exceptionally high momentum score of 99.89.
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How To Buy QUBT Stock
By now you're likely curious about how to participate in the market for Quantum Computing – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
In the case of Quantum Computing, which is trading at $19.80 as of publishing time, $100 would buy you 5.05 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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