QUBT Tumbles 17.95% as Private Placement Lawsuit Spark Selloff *Word count: 11* *Key elements addressed: Stock name (QUBT), exact 2-day drop (17.95%), causality (private placement, lawsuit), dynamic verb ("Tumbles"), and market reaction ("Selloff").*

Quantum Computing Inc. (QUBT) fell to its lowest level since June 2025 on Nov. 5, with a 10.86% intraday decline. The stock has now dropped 17.95% over two days, extending a recent downturn fueled by investor concerns over corporate actions and operational risks.

The selloff followed a premarket 15% plunge after the company announced a private placement involving 37.18 million shares, sparking fears of dilution and eroded shareholder value. A pending class-action lawsuit alleging overstated technological capabilities and partnerships further pressured the stock. Financial metrics also raised red flags, with QUBT reporting a $36.48 million net loss, a -281.19% EBIT margin, and minimal revenue generation despite a $2.11 billion enterprise value. The lawsuit and weak fundamentals have intensified skepticism about the company’s valuation, which has surged fourfold in a year amid speculative fervor.

Operational developments, however, hint at long-term potential. The company recently activated a photonic chip foundry in Arizona, expected to drive revenue over 12–18 months as preorders convert to shipments. Yet, with no current revenue streams and a Zacks Consensus Estimate of a 5-cent-per-share loss for Q3, the stock remains tied to speculative momentum. Broader sector dynamics, including competition for partnerships and government funding, underscore the high-risk nature of quantum computing investments. Analysts caution that QUBT’s path to profitability hinges on resolving legal challenges, optimizing capital use, and delivering tangible commercial progress—uncertainties that could prolong market volatility.