D-Wave Quantum (NYSE:QBTS) Shares Up 11.1% - What's Next?

Key Points

• D-Wave Quantum shares jumped 11.1% to $17.98 on heavy trading, though volume was 34% below the average. The stock remains below its 50-day and 200-day moving averages.
• An expanded AT&T partnership is strengthening D-Wave’s commercial outlook, with one network-optimization task reportedly reduced from about an hour to less than 15 seconds. Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $36.47.
• Upcoming earnings are the key catalyst as investors assess bookings, revenue growth, cash usage and AT&T-related demand. Risks remain significant: quarterly revenue fell 80.9% year over year to $2.86 million, the company remains unprofitable, and insiders have sold substantial shares in recent months.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report)'s share price traded up 11.1% on Thursday . The company traded as high as $18.13 and last traded at $17.98. Approximately 19,905,449 shares traded hands during trading, a decline of 34% from the average daily volume of 30,248,213 shares. The stock had previously closed at $16.18.

Trending Headlines about D-Wave Quantum

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

• Positive Sentiment: Expanded AT&T partnership strengthens D-Wave’s commercial case. AT&T is broadening its use of D-Wave’s annealing-based quantum technology across multiple network-operations workflows. One optimization task reportedly fell from approximately one hour to less than 15 seconds, highlighting a potentially meaningful enterprise application. Is D-Wave Quantum’s AT&T Win Quietly Redefining Its Competitive Edge in Enterprise Computing?
• Positive Sentiment: Analyst support remains favorable. Rosenblatt Securities reiterated its Buy rating, while Benchmark initiated coverage with a Buy rating and a $30 price target. The new coverage adds to a generally bullish view as investors focus on D-Wave’s bookings, backlog and commercial traction ahead of earnings. Rosenblatt Reiterates Buy Rating for D-Wave Quantum
• Positive Sentiment: D-Wave is viewed as better positioned than some quantum peers. Recent comparisons point to record bookings, an expanding backlog and stronger commercial momentum than Rigetti Computing, factors that could support QBTS if upcoming results confirm continued demand. RGTI vs. QBTS: Which Quantum Stock Is Better Ahead of Q2 Earnings?
• Neutral Sentiment: Second-quarter earnings are the next major catalyst. Results from D-Wave and other quantum companies could determine whether the sector’s recent sell-off has gone too far. Investors will likely focus on bookings, revenue growth, cash usage and management’s outlook for AT&T-related opportunities. Quantum Earnings Could Decide Whether the Sector’s Sell-Off Has Gone Too Far
• Negative Sentiment: Insider selling and sector-wide risk remain overhangs. Vice President Sophie Ames sold 3,070 shares for about $52,000 under a pre-arranged Rule 10b5-1 plan, a relatively small reduction in her holdings. Meanwhile, quantum stocks have suffered a sharp pullback as investors reduce exposure to high-multiple, pre-profit technology companies. D-Wave Quantum Stock Price Down After Insider Selling
• Negative Sentiment: Fundamentals remain speculative. D-Wave’s latest reported revenue was only $2.86 million and declined sharply year over year, while the company remains unprofitable. Continued gains will depend on converting partnerships such as AT&T into sustained revenue growth and improving financial results.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on the company. Jefferies Financial Group reiterated a "buy" rating on shares of D-Wave Quantum in a report on Tuesday, May 12th. Benchmark assumed coverage on D-Wave Quantum in a report on Monday. They set a "buy" rating and a $30.00 price target on the stock. Northland Securities assumed coverage on D-Wave Quantum in a research report on Monday, April 20th. They issued a "market perform" rating and a $22.00 price target on the stock. Needham & Company LLC reiterated a "buy" rating and issued a $40.00 price objective on shares of D-Wave Quantum in a research note on Tuesday, June 2nd. Finally, Stifel Nicolaus set a $35.00 price objective on D-Wave Quantum in a research report on Tuesday, June 2nd. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $36.47.

D-Wave Quantum Trading Up 11.1%

The company has a debt-to-equity ratio of 0.03, a current ratio of 21.41 and a quick ratio of 21.31. The business's 50 day moving average is $22.93 and its 200 day moving average is $20.97. The stock has a market cap of $6.65 billion, a price-to-earnings ratio of -15.91 and a beta of 2.11.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last posted its quarterly earnings results on Tuesday, May 12th. The company reported ($0.05) earnings per share for the quarter, beating analysts' consensus estimates of ($0.08) by $0.03. The company had revenue of $2.86 million for the quarter, compared to analysts' expectations of $4.19 million. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.D-Wave Quantum's quarterly revenue was down 80.9% on a year-over-year basis. During the same period last year, the firm earned ($0.02) earnings per share. As a group, equities analysts expect that D-Wave Quantum Inc. will post -0.42 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In related news, Director Rohit Ghai sold 13,518 shares of the business's stock in a transaction that occurred on 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. The trade was a 36.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director John D. Dilullo sold 7,850 shares of the company's stock in a transaction that occurred 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 completion of the transaction, the director directly owned 21,310 shares of the company's stock, valued at $520,603.30. This trade represents a 26.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 1,363,842 shares of company stock worth $35,789,148. 1.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On D-Wave Quantum

Several hedge funds and other institutional investors have recently bought and sold shares of QBTS. CoreCap Advisors LLC lifted its holdings in shares of D-Wave Quantum by 9.2% in the 2nd quarter. CoreCap Advisors LLC now owns 6,115 shares of the company's stock valued at $147,000 after purchasing an additional 515 shares during the last quarter. Sigma Planning Corp lifted 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 buying an additional 560 shares during the last quarter. AlphaStar Capital Management LLC lifted its stake 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 valued at $708,000 after buying an additional 592 shares during the last quarter. Thoroughbred Financial Services LLC boosted its holdings in shares of D-Wave Quantum by 0.5% in the fourth quarter. Thoroughbred Financial Services LLC now owns 131,852 shares of the company's stock valued at $3,447,000 after acquiring an additional 602 shares during the period. Finally, Arizona State Retirement System boosted its holdings in shares of D-Wave Quantum by 0.7% in the fourth quarter. Arizona State Retirement System now owns 92,037 shares of the company's stock valued at $2,407,000 after acquiring an additional 613 shares during the period. 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.

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