Quantum Computing Inc. (QUBT) stock plunged 22.12% during Thursday's intraday trading session, erasing a significant portion of its recent gains. The steep sell-off was fueled by growing concerns about the company's sky-high valuation and its ability to sustain operations amid mounting losses.

Despite securing a contract from NASA to utilize its Dirac-3 quantum optimization machine, investors appear to be questioning the fundamentals of Quantum Computing Inc. The company reported a net loss of $5.7 million in the third quarter, raising doubts about its financial viability and the need for urgent new funding.

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. While the technology holds immense potential, persistent technical challenges, high error margins, and the need for substantial investments have led some experts to caution against speculative fervor outpacing concrete deliverables.