Quantum Computing Inc. (QUBT) saw its stock plummet 5.88% in the pre-market trading session on Friday, December 20th, amid growing concerns over the company's inflated valuation and mounting financial losses.

The steep sell-off comes as investors become increasingly skeptical about the company's lofty valuation and its ability to generate sustainable profits. Despite securing a contract from NASA to utilize its Dirac-3 quantum optimization machine, Quantum Computing Inc. reported a staggering net loss of $5.7 million in the third quarter, raising doubts about its financial viability and the need for urgent new funding.

Furthermore, analysts and short-sellers have warned that the quantum computing industry, and Quantum Computing Inc. in particular, may be experiencing an overvaluation reminiscent of the dot-com bubble. Persistent technical challenges, high error margins, and the need for substantial investments outpacing concrete deliverables have fueled concerns about the company's long-term prospects.