Showing posts with label rise. Show all posts
Showing posts with label rise. Show all posts

Saturday, March 15, 2025

Quantum Stocks Just Ripped Why This Is Just The Beginning

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It’s not every day that a single announcement sends an entire group of stocks surging by double digits. But that’s exactly what happened yesterday when a little-known quantum computing company revealed a stunning breakthrough that shocked the market. The company – D-Wave Quantum Inc. (QBTS) – released a statement saying that one of its quantum computers completed a complex materials-science simulation in just 20 minutes……Continue reading….

By Louis Navellier

Source:  InvestorPlace

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Critics:

Valuation metrics show that Quantum Corporation may be overvalued. Its Value Score of D indicates it would be a bad pick for value investors. The financial health and growth prospects of QMCO, demonstrate its potential to underperform the market. It currently has a Growth Score of C. Quantum Computing Stocks Dive After Nvidia CEO Says Tech 15-30 Years Away.

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Quantum computing stocks such as IonQ and Rigetti Computing have skyrocketed in recent months. Quantum computing remains a fairly speculative market. If you want exposure to quantum computing, a passive exchange-traded fund (ETF) may be the better solution.Valuation metrics show that QuantumScape Corporation may be fairly valued. Its Value Score of C indicates it would be a neutral pick for value investors.

The financial health and growth prospects of QS, demonstrate its potential to perform inline with the market. It currently has a Growth Score of D. It will become a fundamental tool for scientific research, making it easier to solve problems that were previously impossible. Researchers are making continuous progress in increasing the coherence times of qubits, reducing error rates, and developing new quantum algorithms.

The exchange between Musk and Pichai quickly evolved into a fascinating discussion about the future of quantum technology and humanity’s energy needs. When Pichai suggested the possibility of building a “quantum cluster in space” using Musk’s Starship, Musk replied, “That will probably happen.”IBM is pushing the field of quantum computing forward with Condor, the world’s largest quantum chip, and Heron, the company’s best-performing quantum chip to date.

Quantum computing 101: Classical computers use binary digits, or “bits,” to process and store data. These are just a few of the possibilities that may be enabled by quantum computing, which harnesses the laws of physics to perform calculations much faster than even the most powerful traditional computers. They all hinge on research here in the United States, the world’s undisputed leader in quantum computing.

(NYSE:IONQ) is a compelling pure-play investment, that is well-placed to capitalize on quantum computing’s rapid growth. This growth is driven by the increasing inadequacy of classical computing for solving complex problems . Quantum Processing Units (QPUs) implement a new model of computing with potential impact across industries. Turning QPUs into useful quantum computers means integrating them with state-of-the-art AI supercomputers. 

NVIDIA is working with QPU developers to build such useful, accelerated quantum supercomputers. Every year, the tech giant spends close to $1 billion in research and development in emerging tech, including quantum computing and AI. This strategy has proved fruitful, with the company holding over 3,000 patents in these domains. Microsoft has also heavily invested in the quantum programming ecosystem. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock.

On further gains, the stock will meet resistance from the short-term Moving Average at approximately $56.08. You can profit from that growth by investing in the startups or Big Tech firms building quantum computers, or by investing in firms that manufacture the components. Alternatively, you could invest in sectors set to benefit from the advent of quantum computing, like Big Data, biotech, and cybersecurity.

Gates, who is a backer of electric vehicle battery maker QuantumScape, added that he was going to try to stay involved in the “higher quality” SPACs. QuantumScape and Evolv Technology are two Gates-backed companies that have taken the SPAC path recently. QuantumScape has a consensus rating of Hold which is based on 1 buy ratings, 4 hold ratings and 1 sell ratings.

The average price target for QuantumScape is $6.46. This is based on 6 Wall Streets Analysts 12-month price targets, issued in the past 3 months. Quantum computing can potentially enhance AI’s capabilities by removing the limitations of data size, complexity, and the speed of problem solving.” Researchers are already working on enhancing current AI methods in research by applying quantum computing methods to protein structure prediction.

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Friday, January 24, 2025

Inside The Rise of Stealerships and The Shady Economics of Car Buying

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Recently, my truck was stolen, forcing me to get some new wheels. And, for the first time in my life, I’ve been looking to buy a new car. The process has involved hours of searching. Painful haggling.  And encounters with many dealerships that, quite frankly, have been downright duplicitous. The whole thing has been kind of a nightmare. Cars are, of course, expensive, especially with the supply chain fiasco creating shortages. But it’s more than that. Shopping for cars is not like shopping for most other products.……..Continue reading….

By: 

Source: NPR

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Critics:

In economic theory, car dealerships can be characterized as franchisees and the automobile manufacturers as franchisors. A franchise relationship can be beneficial to both parties, as the franchisee can sell a well-made and attractive product while the franchisor can rely on the franchisee to incur downstream costs and use its local relationships to sell more products and services.

The franchisor can act opportunistically by imposing constraints and burden on the franchisee after the latter has incurred sunk costs, such as investing in physical assets and building up a reputation with customers. The franchisor could for example require that cars be sold at low prices, services be performed for little compensation.

The franchisee could on the other hand act opportunistically by using its local monopoly to perform poor customer service, charge customers more and pass those unnecessarily high costs to the franchisor. Car dealerships have lobbied for regulations that increase the survival and profitability of car dealerships: By 2010, all US states had laws that prohibited manufacturers from side-stepping independent car dealers and selling cars to customers directly.

By 2009, most states imposed restrictions on the creation of new dealerships to compete with incumbent dealerships. All states impose severe limits on the ability of a manufacturer to terminate a franchise relationship. Most states prevent manufacturers from engaging in “quantity forcing” whereby manufacturers require that dealers purchase vehicles that they had not ordered.

Most states limit the ability of manufacturers to discriminate between car dealers (for example, by providing better terms to large car dealers with economies of scale or dealers that provide better customer service). Many state laws impose upon manufacturers the precise terms under which they must compensate dealers for the costs associated with warranty repairs (these can incentivize dealers to increase the price of repairs to customers).

Most state laws require upon termination of a dealership that manufacturers buy back the inventory, special equipment and in some cases pay the rent of the dealer’s facilities. Economists have characterized these laws as a form of rent-seeking that extracts rents from manufacturers of cars and increases costs for consumers of cars while raising profits for car dealers. 

Multiple studies have shown that regulations that protect car dealerships increase car costs for consumers and limit the profitability of manufacturers. The issuance of new dealership licenses is subject to geographical restriction; if there is already a dealership for a company in an area, no one else can open one.

This has led to dealerships becoming in essence hereditary, with families running dealerships in an area since the original issuance of their license with no fear of competition or any need to prove qualification or consumer benefit (beyond proving they meet minimum legal standards), as franchises in most jurisdictions can only be withdrawn for illegal activity and no other reason.

This has led to consumer campaigns for establishment or reform, which have been met by huge lobbying efforts by franchise holders. New companies trying to enter the market, such as Tesla, have been restricted by this model and have either been forced out or been forced to work around the franchise model, facing constant legal pressure.

According to a 2023 survey by the Sierra Club, two-thirds of US car dealerships did not have electric or hybrid vehicles for sale. Reasons for this include supply chain difficulties, as well as a need for car dealers to make substantial investments in new employee training and infrastructure to be able to sell, service and maintain electric vehicles.

In the European Union, car manufacturers were permitted from 1985 to 2006 to enter into contracts with car dealerships that restricted what kinds of cars that dealers were permitted to sell. Car manufacturers were able “to impose qualitative, quantitative and geographical restrictions on supply by selling their cars only through a limited number of dealers bound by strict franchise agreements.” 

In 2006, the European Commission determined that it was anticompetitive for car manufacturers to prohibit dealers from carrying multiple car brands.Car manufacturers in the European Union are increasingly shifting towards selling cars directly to customers without reliance on independent dealers. Volvo has announced plans to sell all vehicles directly to customers by 2030.

Hiroshima car dealers seek ways to attract mechanics The Japan Times 09:31 Mon, 25 Dec 

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Blog Dealers introduce used car buying bans to protect cashflow Motor Trader 14:14 Thu, 30 Nov 
Car Dealers Warn Biden Administration to Pump Brakes on EV Plans OilPrice.com 20:54 Tue, 28 Nov

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