D-Wave Quantum (NYSE:QBTS) Stock Price Down 7% After Earnings Miss

D-Wave Quantum Inc. (NYSE:QBTS) shares traded down 7% during trading on Friday following a dissappointing earnings announcement. The stock traded as low as $17.65 and last traded at $18.7330. 27,344,717 shares traded hands during mid-day trading, a decline of 18% from the average session volume of 33,210,672 shares. The stock had previously closed at $20.14.

The company reported ($0.09) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.04). D-Wave Quantum had a negative net margin of 1,651.81% and a negative return on equity of 97.58%. The company had revenue of $2.75 million for the quarter, compared to analysts’ expectations of $3.74 million. The firm’s revenue was up 21.7% on a year-over-year basis.

Key Stories Impacting D-Wave Quantum

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

• Positive Sentiment: Material bookings and enterprise traction — Management reported Q4 bookings of $13.4M (big sequential jump) and said January bookings topped $30M; the company also disclosed large Advantage2 system sales and institutional contracts that underpin future revenue upside. MarketBeat: Despite a Double Miss
• Positive Sentiment: Strong cash runway following the Quantum Circuits acquisition — D-Wave finished the period with roughly $885M in cash & marketable securities even after the acquisition and cash outlays, which reduces near-term financing risk while the company invests in R&D and go-to-market. MarketBeat: Cash Position
• Neutral Sentiment: Full earnings materials and call transcripts are available for investors who want details on bookings composition, margin outlook and integration plans; the call provides color but no immediate catalytic guidance. Earnings Call Transcript
• Neutral Sentiment: Analysts remain largely constructive but are resetting targets — several firms kept buy/outperform ratings while trimming targets, leaving consensus upside but lowering near-term sentiment. Benzinga: Analyst Coverage
• Negative Sentiment: Double miss on the quarter — reported EPS missed estimates (wider loss than expected) and revenue of $2.75M came in below consensus, highlighting that current monetization remains small and lumpy. Zacks: Q4 Earnings Miss
• Negative Sentiment: Post-earnings price-target cuts and investor rotation pressured the rally — several firms trimmed targets (examples: Needham, Mizuho, Roth) and media noted an initial pop that faded as analysts lowered targets and investors weighed long-term promise versus weak near-term results. The Motley Fool: Reaction

Analyst Ratings Changes

A number of equities analysts have commented on QBTS shares. Benchmark restated a “buy” rating and set a $35.00 price objective on shares of D-Wave Quantum in a research report on Friday, January 23rd. Williams Trading set a $35.00 price target on shares of D-Wave Quantum in a report on Monday, November 10th. Zacks Research upgraded shares of D-Wave Quantum from a “strong sell” rating to a “hold” rating in a research report on Thursday, November 6th. Rosenblatt Securities reiterated a “buy” rating and set a $43.00 target price on shares of D-Wave Quantum in a research report on Wednesday, January 28th. Finally, Mizuho cut their target price on D-Wave Quantum from $46.00 to $40.00 and set an “outperform” rating for the company in a research note on Friday. Fourteen equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $36.50.

Insider Activity at D-Wave Quantum

In related news, Director Kirstjen Nielsen sold 7,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $22.62, for a total value of $158,340.00. Following the sale, the director owned 112,673 shares in the company, valued at $2,548,663.26. This represents a 5.85% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director John D. Dilullo sold 8,000 shares of the firm’s stock in a transaction that occurred on Friday, December 5th. The shares were sold at an average price of $27.36, for a total value of $218,880.00. Following the completion of the transaction, the director directly owned 27,803 shares of the company’s stock, valued at $760,690.08. The trade was a 22.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,074,466 shares of company stock valued at $31,558,806 in the last ninety days. Company insiders own 3.20% of the company’s stock.

Institutional Trading of D-Wave Quantum

Several large investors have recently bought and sold shares of the company. Root Financial Partners LLC increased its position in shares of D-Wave Quantum by 388.0% in the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock valued at $26,000 after buying an additional 776 shares in the last quarter. Kemnay Advisory Services Inc. acquired a new stake in D-Wave Quantum in the 4th quarter valued at about $28,000. Atlantic Union Bankshares Corp purchased a new position in D-Wave Quantum during the 2nd quarter valued at about $29,000. EverSource Wealth Advisors LLC increased its holdings in D-Wave Quantum by 267.7% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock valued at $30,000 after acquiring an additional 838 shares in the last quarter. Finally, Ancora Advisors LLC acquired a new position in D-Wave Quantum during the third quarter worth about $30,000. Institutional investors and hedge funds own 42.47% of the company’s stock.

D-Wave Quantum Stock Down 7.0%

The company has a quick ratio of 54.49, a current ratio of 54.68 and a debt-to-equity ratio of 0.05. The firm’s fifty day simple moving average is $24.40 and its 200-day simple moving average is $24.89. The company has a market cap of $6.93 billion, a PE ratio of -13.88 and a beta of 1.56.

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.