D-Wave Quantum (NYSE:QBTS) Shares Gap Down - Should You Sell?

Key Points

• D-Wave Quantum shares gapped down after the company’s latest earnings report, opening below the prior close and trading lower as investors reacted to the results.
• The company beat EPS expectations with a loss of $0.05 per share versus the expected $0.08 loss, but revenue missed estimates at $2.86 million, down 80.9% year over year.
• Despite near-term pressure, management highlighted bookings up nearly 2,000% year over year and growing commercial adoption, while analysts still view the stock as a Moderate Buy with a consensus price target of $35.53.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $24.03, but opened at $22.42. D-Wave Quantum shares last traded at $23.58, with a volume of 15,692,820 shares.

Key D-Wave Quantum News

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

• Positive Sentiment: D-Wave’s Q1 loss of $0.05 per share beat expectations for a $0.08 loss, giving bulls a reason to focus on better-than-expected bottom-line performance. QBTS Q1 Earnings Top Estimates, Revenues Miss, Stock Up
• Positive Sentiment: The company said bookings surged nearly 2,000% year over year, and management pointed to expanding commercial adoption plus momentum from its quantum initiatives, which supports the long-term growth story. D-Wave Quantum (QBTS) Earnings: Revenue Falls 81%, but Bookings Surge Nearly 2,000%
• Neutral Sentiment: Shares also drew attention because investors are weighing record bookings and new government deals against profitability concerns and a stretched valuation ahead of the earnings release. D-Wave Q1 2026 Earnings Tomorrow: Time to Buy Stock, Hold or Wait?
• Negative Sentiment: Revenue of $2.86 million badly missed estimates of about $4.19 million and fell 80.9% from a year ago, which is the main reason for the bearish reaction in the stock. Quantum Computing Stock Cools Off After Revenue Whiff
• Negative Sentiment: Analysts also highlighted that the company remains deeply unprofitable, with a very large negative net margin and negative return on equity, keeping pressure on the shares despite the earnings beat. D-Wave Quantum Inc. (QBTS) Reports Q1 Loss, Misses Revenue Estimates

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the company. Benchmark reissued a "buy" rating and issued a $35.00 price objective on shares of D-Wave Quantum in a research report on Friday, January 23rd. Roth Mkm lowered their price objective on D-Wave Quantum from $40.00 to $30.00 and set a "buy" rating on the stock in a research report on Friday, February 27th. Weiss Ratings lowered D-Wave Quantum from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Wednesday, April 29th. Needham & Company LLC dropped their price objective on shares of D-Wave Quantum from $48.00 to $40.00 and set a "buy" rating for the company in a research note on Thursday, February 26th. Finally, Rosenblatt Securities reaffirmed a "buy" rating and set a $43.00 price objective on shares of D-Wave Quantum in a report on Wednesday, January 28th. Fourteen equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, D-Wave Quantum presently has an average rating of "Moderate Buy" and a consensus price target of $35.53.

D-Wave Quantum Trading Down 9.7%

The company has a 50 day moving average of $17.83 and a 200 day moving average of $22.84. The firm has a market cap of $8.03 billion, a price-to-earnings ratio of -19.82 and a beta of 1.95. The company has a current ratio of 42.38, a quick ratio of 42.25 and a debt-to-equity ratio of 0.04.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last issued its quarterly earnings data on Tuesday, May 12th. The company reported ($0.05) earnings per share for the quarter, topping the consensus estimate of ($0.08) by $0.03. The firm had revenue of $2.86 million for the quarter, compared to analysts' expectations of $4.19 million. D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 58.58%. The company's quarterly revenue was down 80.9% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.02) earnings per share. As a group, research analysts anticipate that D-Wave Quantum Inc. will post -0.44 EPS for the current year.

Insider Buying and Selling at D-Wave Quantum

In other D-Wave Quantum news, Director John D. Dilullo sold 8,000 shares of the company's stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $18.01, for a total transaction of $144,080.00. Following the completion of the sale, the director owned 19,803 shares in the company, valued at approximately $356,652.03. The trade was a 28.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Rohit Ghai sold 10,000 shares of the stock in a transaction on Monday, March 16th. The shares were sold at an average price of $17.62, for a total value of $176,200.00. Following the completion of the transaction, the director directly owned 27,778 shares in the company, valued at approximately $489,448.36. This trade represents a 26.47% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 31,776 shares of company stock valued at $574,571. 3.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On D-Wave Quantum

Hedge funds have recently added to or reduced their stakes in the stock. Huntington National Bank increased its stake in shares of D-Wave Quantum by 17.9% in the 3rd quarter. Huntington National Bank now owns 3,300 shares of the company's stock valued at $82,000 after acquiring an additional 500 shares during the last quarter. Sigma Planning Corp increased its stake in D-Wave Quantum by 3.6% in the fourth quarter. Sigma Planning Corp now owns 16,329 shares of the company's stock valued at $431,000 after purchasing an additional 560 shares in the last quarter. AlphaStar Capital Management LLC raised its holdings in D-Wave Quantum by 2.2% in the fourth quarter. AlphaStar Capital Management LLC now owns 27,063 shares of the company's stock worth $708,000 after purchasing an additional 592 shares during the period. Noble Wealth Management PBC raised its holdings in D-Wave Quantum by 6.7% in the fourth quarter. Noble Wealth Management PBC now owns 9,600 shares of the company's stock worth $251,000 after purchasing an additional 600 shares during the period. Finally, Thoroughbred Financial Services LLC boosted its position in shares of D-Wave Quantum by 0.5% during the fourth quarter. Thoroughbred Financial Services LLC now owns 131,852 shares of the company's stock worth $3,447,000 after purchasing an additional 602 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.

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