QUBT - Why Is Quantum Computing (QUBT) Stock Up 25% Today?
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Will ultra-powerful computers rule the world in the coming years? Investors in Quantum Computing (NASDAQ:QUBT) might consider this possibility, along with the profit potential of quantum computing in general. Today, QUBT stock investors are celebrating what might be a watershed moment in the quantum computing field as Quantum Computing disclosed the launch of a new subsidiary.
Quantum Computing is a full-stack quantum software and hardware company. The company just launched QI Solutions, a “wholly owned subsidiary dedicated to delivering quantum solutions to the government and defense markets.”
This new business unit will operate mainly out of a facility in Arizona. Furthermore, it will manage contracts from the Department of Defense and from the U.S. government generally. War combat veteran and former Special Operations officer Sean Gabeler will oversee QI Solutions as president of the subsidiary.
So, is this a significant development for Quantum Computing? The market, as we’ll see in a moment, appears to be quite bullish on Quantum Computing’s new subsidiary.
What’s Happening with QUBT Stock?
By 10:30 a.m. Eastern, QUBT stock was up 25% for the day. With that, the Quantum Computing share price might manage to stay above the $3 level throughout the trading session.
Why would the market celebrate Quantum Computing’s new business unit? Probably, because it implies that Quantum Computing has a considerable number of government orders to fulfill. Or, the company may expect to field many more orders in the near future.
In other words, Quantum Computing probably anticipates having so many Department of Defense orders that the company’s establishing a new division just to manage those orders. Bullish investors might also be expressing their confidence in Gabeler as the leader of QI Solutions.
Gabeler describes QI Solutions as Quantum Computing’s “government facing entity.” If Quantum Computing becomes the government’s go-to source for quantum computing solutions, the company could generate powerful revenue from this. Today, QUBT stock traders are clearly excited about the prospect of a strong business relationship between the U.S. government and Quantum Computing.
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On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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