Wall Street Sticks With Quantum Stocks Despite Institutional Exit

Wall Street firms like Wedbush are standing by their buy ratings for IonQ, Rigetti, and D Wave, even as the stocks have plummeted between 24% and 36% this month. Despite the sharp price drops, analysts have yet to issue downgrades, relying on research and price targets established earlier in the spring and summer.

The real story lies in the contrast between retail optimism and institutional behavior. Options traders have turned increasingly bullish, with put call ratios showing significant shifts toward long positions. However, institutional money flow data tells a much more cautious story, consistently showing outflows from these assets.

Adding to the uncertainty, internal data reveals that insiders have sold nearly one billion dollars worth of stock across these three companies since 2021. This persistent selling, combined with negative money flow indicators, suggests that larger holders are not buying into the current market hype.

For investors watching the space, the gap between bullish analyst sentiment and technical outflow data remains the most critical factor. While scientific progress continues to drive interest in quantum technology, the market signal suggests that smart money is taking a step back until the fundamentals catch up to the current stock prices.