Arqit Quantum (NASDAQ:ARQQ) stock is slipping on Tuesday after former employees made allegations about the company’s capabilities.
Arqit Quantum is a cybersecurity company based out of the U.K. and its major product is QuantumCloud. This is a piece of software that allows any device to download a lightweight agent for the creation of encryption keys.
Arqit Quantum has been making bold claims about its encryption software. That includes stating that not even quantum computers will be able to break its codes. It’s these claims that have former employees of the company speaking up.
The Wall Street Journal recently spoke with previous employees of Arqit Quantum. According to these, the company is overstating the readiness and ability of QuantumCloud. They also allege that the company is too optimistic about its future revenue.
Arqit Quantum continues to promote its encryption software with Chief Cryptographer Dr. Daniel Shiu saying the following in a release today.
“Arqit’s entirely new system delivers symmetric key agreement using a light weight software agent which is small enough to run on any device, and creates computationally secure zero trust encryption keys. The keys work within existing standardised symmetric encryption algorithms like AES 256 and the Arqit software can be implemented easily as a mind-life upgrade without requiring costly transformation.”
These recent claims about Arqit Quantum are shaking investor confidence in the company today. We’re seeing that with shares of the stock falling as heavy trading takes place. This has some 755,000 shares of the stock changing hands. For the record, the company’s daily average trading volume is about 434,000 shares.
ARQQ stock is down 16.1% as of Tuesday afternoon.
Investors looking for more stock market news today will want to keep reading!
InvestorPlace has all the latest stock news traders need to know about for Tuesday! That includes what’s happening with shares of Checkmate Pharmaceuticals (NASDAQ:CMPI), American Campus Communities (NYSE:ACC), and hydrogen stocks today. You can find all of this info at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.