'Pharma Bro' Martin Shkreli Proposes Short Selling on Quantum Computing Stocks
Investing.com -- The controversial figure in the investment world, Martin Shkreli, has suggested short selling in quantum computing stocks. This advice follows a significant rally in these stocks after Google announced a technical achievement called "Willow" on December 9. Shkreli believes these stocks are overvalued and compares the situation to the dot-com bubble.
Google’s announcement has sparked interest in the previously overlooked quantum computing sector. This interest resembles speculative movements in areas like nuclear fusion and meme coins, where the desire to gamble can be satisfied. While recommending short selling on stocks such as D-Wave Systems (QBTS), Rigetti (RGTI), IONQ, and Quantum Computing Inc (QUBT), Shkreli stated that he does not believe quantum computing will have a significant material impact on Alphabet (GOOG) or IBM.
Shkreli estimates that the true values of these stocks are significantly lower than their current prices. For instance, while Rigetti (RGTI) is currently priced at $18.37, its real value is $1.00. IONQ is trading at $49.59 with a real value of $11.23. D-Wave (QBTS) stands at $9.55, with a real value of $0.01, and Quantum Computing Inc (QUBT) at $17.49, also valued at $0.01.
The concept of quantum computing was introduced in the 1980s by Feynman and Deutsch. They contended that a computer capable of mimicking quantum effects in nature would be more adept at simulating reality. This led scientists to research how a theoretical quantum computer could perform certain operations faster than a classical computer. However, the notion of "faster" is defined by complexity, necessitating the construction of a computer that surpasses the speed of classical computers on a certain scale.
Following the discovery of critical algorithms that make quantum computing attractive, many developers embarked on creating such machines. The two most discussed algorithms are Shor's and Grover's algorithms. Theoretically, these algorithms allow a quantum computer to run factorization algorithms more quickly than a conventional computer can; this is referred to as algorithmic time.
D-Wave Systems (NYSE: QBTS) became the first company to focus on quantum computing systems. After struggling as a private company, it went public through a SPAC in 2022. D-Wave's quantum annealers are not considered "real" quantum computing and can perform a very specific function that has not been commercially viable in its 25-year history.
Rigetti Computing (RGTI) is the first "true" quantum computing company. Unlike D-Wave, Rigetti actually produces quantum computers. However, these computers do not work. Rigetti is regarded as a third-tier competitor in the quantum industry.
According to Shkreli, IONQ initially appears to be a more significant company than Rigetti. Its technique utilizes trapped ions for storing quantum information, as opposed to the superconducting transmon circuits that are popular in the industry. These ions are held at room temperature, providing a significant advantage over superconducting technologies. However, they must be placed in extremely low-pressure vacuums and controlled by lasers to have nearly zero energy.
Meanwhile, Shkreli believes Quantum Sciences Inc. (QUBT) to be completely worthless. Retail investors are so desperate to gain exposure that they have even bought shares in two companies not related to quantum computing, simply because the word "quantum" happens to be in their names: Quantum (QMCO) and Quantum-Si (QSI).
In conclusion, Shkreli believes that the practical use of quantum computers is fifteen to thirty years away and that the types of problems quantum computing can solve are not the computational problems currently faced by scientists, researchers, and programmers. He suggests that quantum computing will only help a few computer enthusiasts study cryptography and strange yet useless mathematical problems more easily, which does not constitute a large industry.
This article has been generated, translated, and reviewed by an editor with the support of artificial intelligence. For more information, please refer to our Terms and Conditions section.