D-Wave Quantum (NASDAQ:QBTS) Shares Down 1.1% – What’s Next?

Shares of D-Wave Quantum Inc. (NASDAQ:QBTS) fell 1.1% during mid-day trading on Wednesday . The stock traded as low as $18.92 and last traded at $19.32. 13,027,515 shares traded hands during trading, a decline of 55% from the average session volume of 28,960,445 shares. The stock had previously closed at $19.53.

Key Stories Impacting D-Wave Quantum

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: Commercial validation from NTT DOCOMO: Japan’s largest mobile operator deployed a second D-Wave-powered quantum application in production for network operations. The repeat deployment supports D-Wave’s claims that its technology is moving beyond experimentation and into practical enterprise use. D-Wave Technology Drives NTT DOCOMO’s Second Production Quantum Application in Network Operations
• Positive Sentiment: Bookings momentum is a key bullish point: D-Wave’s second-quarter bookings reportedly surged 1,120% to $36 million. If the company can convert those bookings into recognized revenue, the growth could help justify some of the market’s premium expectations. D-Wave Quantum vs. Microsoft
• Positive Sentiment: Analyst-implied upside and policy support: One analysis estimates approximately 71% potential upside for QBTS, while recent U.S. quantum initiatives and the broader U.S.-China technology race are providing sector-wide attention and possible long-term demand catalysts. D-Wave Stock: 71% Potential Upside
• Neutral Sentiment: Investors are becoming more selective: D-Wave, IonQ and Rigetti are showing different levels of revenue growth and financial strength, encouraging investors to compare individual companies with diversified quantum-focused ETFs rather than buying the entire sector indiscriminately. Quantum Stocks Are Starting to Choose Sides
• Negative Sentiment: Valuation and execution risks remain substantial: D-Wave has minimal revenue, remains unprofitable, and its valuation is considered excessive by some analysts. Weak technical indicators mean investors are likely to demand evidence that bookings growth will produce sustained revenue expansion. D-Wave Stock Valuation and Execution Risks
• Negative Sentiment: Higher interest rates pressured the sector: A rise in long-term Treasury yields triggered a rotation out of high-growth, pre-profit technology stocks, weighing on quantum-computing shares, including QBTS. Quantum Stocks Fall as Rates Force Rotation

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. Wall Street Zen raised D-Wave Quantum from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 8th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $40.00 price target on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Weiss Ratings cut D-Wave Quantum from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Tuesday, August 11th. Mizuho increased their price objective on D-Wave Quantum from $29.00 to $35.00 and gave the company an “outperform” rating in a report on Monday, June 15th. Finally, B. Riley Financial raised their target price on shares of D-Wave Quantum from $36.00 to $40.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $36.36.

D-Wave Quantum Price Performance

The company has a 50-day moving average of $20.86 and a 200-day moving average of $20.28. The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55. The stock has a market cap of $7.15 billion, a price-to-earnings ratio of -27.21 and a beta of 2.15.

D-Wave Quantum (NASDAQ:QBTS) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.02). The company had revenue of $3.08 million for the quarter, compared to analyst estimates of $4.03 million. D-Wave Quantum had a negative return on equity of 26.67% and a negative net margin of 2,001.59%.The firm’s revenue was down 0.6 compared to the same quarter last year. During the same period in the previous year, the business posted ($0.08) earnings per share. As a group, equities research analysts predict that D-Wave Quantum Inc. will post -0.42 earnings per share for the current year.

Insider Buying and Selling

In other D-Wave Quantum news, Director John D. Dilullo sold 7,850 shares of the business’s stock in a transaction on Friday, June 5th. The shares were sold at an average price of $24.43, for a total value of $191,775.50. Following the transaction, the director directly owned 21,310 shares of the company’s stock, valued at approximately $520,603.30. The trade was a 26.92% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO John M. Markovich sold 328,752 shares of the company’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $27.70, for a total transaction of $9,106,430.40. Following the transaction, the chief financial officer owned 1,442,820 shares of the company’s stock, valued at approximately $39,966,114. The trade was a 18.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,340,817 shares of company stock worth $35,352,133 in the last ninety days. Insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On D-Wave Quantum

Hedge funds have recently added to or reduced their stakes in the company. Baird Financial Group Inc. raised its stake in shares of D-Wave Quantum by 12.0% during the 1st quarter. Baird Financial Group Inc. now owns 12,135 shares of the company’s stock worth $92,000 after buying an additional 1,300 shares in the last quarter. Royal Bank of Canada boosted its stake in shares of D-Wave Quantum by 59.8% in the first quarter. Royal Bank of Canada now owns 162,088 shares of the company’s stock valued at $1,231,000 after buying an additional 60,668 shares in the last quarter. AQR Capital Management LLC boosted its stake in shares of D-Wave Quantum by 201.0% in the first quarter. AQR Capital Management LLC now owns 200,765 shares of the company’s stock valued at $1,526,000 after buying an additional 134,066 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in D-Wave Quantum by 93.4% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company’s stock worth $825,000 after acquiring an additional 52,437 shares during the period. Finally, NewEdge Advisors LLC raised its position in D-Wave Quantum by 125.7% in the first quarter. NewEdge Advisors LLC now owns 43,786 shares of the company’s stock worth $333,000 after acquiring an additional 24,382 shares in the last quarter. Institutional investors and hedge funds own 42.47% of the company’s stock.

About D-Wave Quantum

D-Wave Quantum Inc (NYSE: QBTS) develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools.

The company’s product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources.