D-Wave Quantum (NASDAQ:QBTS) Trading Up 7% - Should You Buy?

Key Points

• D-Wave shares rose 7% to $20.76 amid signs of stronger demand, including a roughly 1,100% year-over-year increase in first-half bookings and a $40.7 million backlog.
• The company’s long-term outlook received support from expanding commercial applications, a staged gate-model quantum-computing roadmap, and a peer-reviewed hardware advance. Analysts maintain a “Moderate Buy” consensus with an average price target of $35.40.
• Execution risks remain significant: second-quarter revenue of $3.08 million missed estimates, the loss widened to $0.10 per share, and net loss reached $48.03 million. Insiders also sold 1.36 million shares during the quarter.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report) shares shot up 7% during trading on Friday . The stock traded as high as $20.92 and last traded at $20.76. Approximately 16,202,244 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 29,840,520 shares. The stock had previously closed at $19.41.

D-Wave Quantum News Roundup

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

• Positive Sentiment: D-Wave reported a roughly 1,100% year-over-year increase in first-half bookings and a $40.7 million backlog, indicating stronger customer demand even though revenue recognition remains limited. The company said revenue-generating customer orders and commercial exposure are expanding. Why D-Wave Quantum Stock Fell After Earnings Revealed in Bookings
• Positive Sentiment: Management emphasized expanding production use of its annealing systems and a staged roadmap for gate-model quantum computing. Revenue is expected to be weighted heavily toward the fourth quarter of 2026, suggesting potential back-end-loaded growth if deployments convert as planned. QBTS Q2 Earnings Call Focuses on Adoption and Quantum Roadmaps
• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and assigned a $43 price target, reflecting substantial potential upside based on D-Wave’s bookings growth and quantum-computing prospects. Rosenblatt Securities Rating
• Positive Sentiment: A peer-reviewed Nature publication described a D-Wave hardware advance involving a high-fidelity two-qubit entangling gate, supporting the company’s longer-term effort to develop practical, fault-tolerant gate-model systems. D-Wave Demonstrates Hardware Breakthrough
• Negative Sentiment: Second-quarter revenue was $3.08 million, below estimates near $4.03 million, while the loss of $0.10 per share exceeded the expected $0.08 loss. The company also posted a $48.03 million net loss, keeping execution and cash-burn concerns central to the investment case. QBTS Stock Falls on Q2 Loss and Revenue Miss

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on QBTS shares. Northland Securities assumed coverage on D-Wave Quantum in a report on Monday, April 20th. They set a "market perform" rating and a $22.00 price objective on the stock. Wedbush assumed coverage on D-Wave Quantum in a research report on Monday. They issued an "outperform" rating and a $40.00 price objective for the company. B. Riley Financial raised their target price on D-Wave Quantum from $36.00 to $40.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd. Canaccord Genuity Group set a $35.00 target price on shares of D-Wave Quantum in a research report on Thursday. Finally, Jefferies Financial Group set a $40.00 price target on shares of D-Wave Quantum in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, D-Wave Quantum currently has a consensus rating of "Moderate Buy" and an average price target of $35.40.

D-Wave Quantum Price Performance

The firm has a market cap of $7.68 billion, a PE ratio of -18.37 and a beta of 2.15. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03. The company has a 50 day moving average price of $21.93 and a 200 day moving average price of $20.59.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.10) earnings per share for the quarter, missing the consensus estimate of ($0.08) by ($0.02). The firm had revenue of $3.08 million during the quarter, compared to analysts' expectations of $4.03 million. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The business's revenue for the quarter was down 0.6 on a year-over-year basis. During the same period in the previous year, the business earned ($0.08) earnings per share. On average, sell-side analysts expect that D-Wave Quantum Inc. will post -0.42 EPS for the current year.

Insiders Place Their Bets

In other news, Director John D. Dilullo sold 7,850 shares of D-Wave Quantum stock in a transaction on Friday, June 5th. The stock was sold at an average price of $24.43, for a total transaction of $191,775.50. Following the completion of the transaction, the director owned 21,310 shares of the company's stock, valued at $520,603.30. The trade was a 26.92% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Rohit Ghai sold 13,518 shares of the business's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $26.41, for a total transaction of $357,010.38. Following the completion of the sale, the director owned 23,617 shares in the company, valued at $623,724.97. This represents a 36.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 1,363,842 shares of company stock valued at $35,789,148. Company insiders own 1.30% of the company's stock.

Institutional Trading of D-Wave Quantum

Several large investors have recently modified their holdings of the business. BlackRock Inc. acquired a new stake in D-Wave Quantum during the 2nd quarter valued at $795,206,000. UBS Group AG increased its position in D-Wave Quantum by 541.6% during the third quarter. UBS Group AG now owns 12,089,703 shares of the company's stock worth $298,737,000 after buying an additional 10,205,427 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its holdings in shares of D-Wave Quantum by 136,842.4% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company's stock worth $83,546,000 after acquiring an additional 3,192,533 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of D-Wave Quantum by 311.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company's stock worth $92,781,000 after acquiring an additional 2,685,980 shares during the last quarter. Finally, Bank of New York Mellon Corp purchased a new stake in shares of D-Wave Quantum in the second quarter valued at $54,951,000. 42.47% of the stock is currently owned by institutional investors and hedge funds.

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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