Arqit Quantum Inc (ARQQ)

[Oleblue]

Arqit: Lots of Major Developments in 2024

Arqit's participation in the quantum space is unique: the firm provides a cloud-based quantum encryption subscription service to protect high-security data transmission. Shares are up more than 124% in the year leading to December 19, 2024.

Price Target
$27.00

Arqit's year was incredibly busy. The firm reported modest revenue of under $300,000 for the 2024 fiscal year, which ended September 30. However, it appears poised to grow revenue significantly, given that the company recently finalized a multi-year contract with an unnamed government in the EMEA region. It is expected to generate annual recurring revenue in the seven-figure range.

The company has introduced cost-cutting measures to help it reduce the impact on its modest cash position of under $19 million as of the fourth-quarter earnings report. On top of that, the company completed a 25-for-1 reverse share split in September, the same month in which it appointed a new CEO. With all of this upheaval at the company, investors will likely watch for signs of stability going into the new year.

Arqit's technology appears to be taking off, and interest in contracts is growing. However, the firm still spends cash at a fast rate and has so far failed to establish recurring top- and bottom-line performance sufficient to sustain operations at this pace for the long haul. Investors with a long horizon and a high tolerance for speculative investments, however, may be rewarded for an early interest in this quantum cloud computing company.
Should you invest $1,000 in Arqit Quantum right now?

Before you consider Arqit Quantum, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Arqit Quantum wasn't on the list.

While Arqit Quantum currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

https://www.marketbeat.com/stock-ideas/2-underrated-quantum-computing-companies-starting-to-rally/?UserID=115100&Hash=2AACCD89AD2BA2730D32D01110FD69C4352E0339EEDDD1A4BFD3D64B5F7B6AF9DB03E5D07582D6D71BA491715D09095CC6AB2CDC7AED9D7E03DB7DC62E48A7E2