Why Are Quantum Computing Stocks Falling?

Companies can grow organically and inorganically. The former involves internally developing technology, intellectual property, products, etc., and building the business with in-house talent. Conversely, inorganic growth often refers to acquiring or merging with another company, which can be a high-risk, high-reward move. In this context, the spurt in special purpose acquisition companies (SPACs) until recently represented inorganic growth in the stock market. For example, nearly every NewSpace company that went public over the last two years merged with a SPAC – and probably none of them would have a ticker symbol if investors had not suddenly gone bonkers over blank-check companies. 

We’ve witnessed the reckoning this year: Post-SPAC valuations have fallen more than 65% in the last 12 months, according to the CNBC SPAC Post Deal Index, which tracks SPACs that have completed their mergers and taken their target companies public.

Quantum computing is another tech sector that rushed through the back door to the public markets, though with fewer options for losing your money. We count three former startups that took the quantum leap through the SPAC wormhole. Here