D-Wave Quantum (NASDAQ:QBTS) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded D-Wave Quantum from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $36.36.
• D-Wave’s latest quarter missed expectations, reporting a $0.10 per-share loss versus the estimated $0.08 loss and revenue of $3.08 million versus the expected $4.03 million. The company remains deeply unprofitable, underscoring execution and valuation risks.
• Despite these concerns, commercial adoption and bookings provide potential catalysts: NTT DOCOMO deployed a second production quantum application, while quarterly bookings reportedly rose 1,120% year over year to $36 million. Insiders, including the CEO, sold shares worth more than $35 million over the past 90 days.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Tuesday,Zacks.com reports.

A number of other research firms have also recently commented on QBTS. Wedbush initiated coverage on D-Wave Quantum in a research note on Monday, August 3rd. They set an "outperform" rating and a $40.00 price target on the stock. B. Riley Financial lifted their price objective on D-Wave Quantum from $36.00 to $40.00 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. Benchmark started coverage on D-Wave Quantum in a report on Monday, July 27th. They issued a "buy" rating and a $30.00 price objective on the stock. Needham & Company LLC reissued a "buy" rating and set a $40.00 target price on shares of D-Wave Quantum in a research note on Tuesday, June 2nd. Finally, Cantor Fitzgerald restated an "overweight" rating and set a $40.00 target price on shares of D-Wave Quantum in a report on Wednesday, May 13th. Twelve investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $36.36.

D-Wave Quantum Stock Down 1.1%

QBTS stock opened at $19.32 on Tuesday. D-Wave Quantum has a one year low of $12.75 and a one year high of $46.75. The firm has a market cap of $7.15 billion, a PE ratio of -27.21 and a beta of 2.15. The firm's 50 day moving average price is $20.78 and its 200-day moving average price is $20.25. The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.02). The company had revenue of $3.08 million during the quarter, compared to analyst estimates of $4.03 million. D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The company's quarterly revenue was down 0.6 compared to the same quarter last year. During the same period in the previous year, the company earned ($0.08) EPS. On average, equities research analysts anticipate that D-Wave Quantum will post -0.46 EPS for the current year.

Insider Activity at D-Wave Quantum

In other D-Wave Quantum news, CEO Alan E. Baratz sold 687,627 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $26.13, for a total value of $17,967,693.51. Following the completion of the transaction, the chief executive officer owned 3,299,771 shares of the company's stock, valued at $86,223,016.23. This trade represents a 17.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Sophie C. Ames sold 3,070 shares of the business's stock in a transaction on Monday, July 20th. The stock was sold at an average price of $16.95, for a total transaction of $52,036.50. Following the completion of the transaction, the vice president owned 589,009 shares of the company's stock, valued at approximately $9,983,702.55. This trade represents a 0.52% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,340,817 shares of company stock worth $35,352,133 over the last 90 days. 1.30% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Northwestern Mutual Wealth Management Co. grew its stake in D-Wave Quantum by 141.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 4,895 shares of the company's stock worth $117,000 after purchasing an additional 2,866 shares in the last quarter. Wedbush Securities Inc. acquired a new stake in D-Wave Quantum in the 2nd quarter valued at about $357,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of D-Wave Quantum by 3.4% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 799,873 shares of the company's stock valued at $19,189,000 after buying an additional 25,947 shares during the period. Van ECK Associates Corp boosted its stake in shares of D-Wave Quantum by 52.6% in the 2nd quarter. Van ECK Associates Corp now owns 2,339,788 shares of the company's stock valued at $56,132,000 after buying an additional 806,835 shares during the period. Finally, Navellier & Associates Inc. grew its position in shares of D-Wave Quantum by 20.3% during the second quarter. Navellier & Associates Inc. now owns 47,962 shares of the company's stock worth $1,151,000 after buying an additional 8,088 shares in the last quarter. 42.47% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting D-Wave Quantum

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

• Positive Sentiment: Commercial adoption is expanding. NTT DOCOMO deployed a second D-Wave-powered quantum application in production for network operations. The development provides evidence that D-Wave’s technology is moving beyond experimentation toward real-world enterprise use. D-Wave Technology Drives NTT DOCOMO’s Second Production Quantum Application in Network Operations
• Positive Sentiment: Bookings showed significant momentum. A recent comparison article highlighted a 1,120% year-over-year increase in second-quarter bookings to $36 million, suggesting potential for future revenue growth if the company converts bookings into recognized sales. D-Wave Quantum vs. Microsoft
• Positive Sentiment: Sector and policy catalysts remain supportive. Coverage points to recent U.S. quantum initiatives and the intensifying U.S.-China technology race as potential long-term tailwinds for D-Wave and other quantum-computing companies. U.S.-China 2026 Tech Race
• Neutral Sentiment: Analysts see substantial upside, but execution is critical. One review cited approximately 71% implied price upside while warning that investors need evidence of bookings translating into revenue. Quantum-focused investors are also comparing individual stocks such as QBTS with diversified ETFs. D-Wave Stock: 71% Potential Upside
• Negative Sentiment: Valuation and profitability remain major risks. D-Wave has minimal revenue, remains unprofitable and trades at a valuation that critics describe as excessive. Its latest quarterly revenue also came in below expectations, increasing the importance of future commercial conversion.
• Negative Sentiment: Higher interest rates are hurting speculative stocks. A rise in long-term Treasury yields triggered a broad rotation out of high-risk technology names, including quantum stocks, weighing on QBTS alongside IonQ and Rigetti. Quantum Stocks Fall as Rates Force Rotation

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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