D-Wave Quantum (NYSE:QBTS) Stock Price Down 7.8% - Here's Why

Key Points

• D-Wave Quantum shares fell 7.8% on Wednesday, even though trading volume was above average at 41.6 million shares.
• The stock’s weakness came amid a mix of positive company catalysts, including a tentatively awarded $100 million in federal funding tied to a broader U.S. quantum initiative, plus bullish analyst coverage with price targets as high as $43.
• Despite the recent pullback, Wall Street remains constructive overall: 14 analysts rate QBTS a Buy, with a consensus Moderate Buy rating and an average price target of $36.40.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) fell 7.8% during trading on Wednesday . The company traded as low as $27.38 and last traded at $27.5680. 41,604,326 shares traded hands during mid-day trading, an increase of 28% from the average session volume of 32,412,561 shares. The stock had previously closed at $29.91.

D-Wave Quantum News Summary

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

• Positive Sentiment: D-Wave’s tentatively awarded $100 million in federal funding and inclusion in a wider $2 billion U.S. quantum initiative could accelerate hardware development and commercialization. D-Wave Seeks to Leverage IBM’s Quantum Foundry. $100 Million in Federal Funding Will Help.
• Positive Sentiment: Rosenblatt Securities reaffirmed its Buy rating and raised its price target to $43, signaling meaningful upside from recent trading levels. Benzinga analyst update
• Positive Sentiment: Needham also reiterated a Buy rating with a $40 price target, reinforcing the view that Wall Street sees additional upside in QBTS. Benzinga analyst update
• Positive Sentiment: A new survey from D-Wave and Censuswide showed 41% of large UK enterprises expect quantum computing to unlock more than £100 million in value within a year, suggesting rising enterprise interest in the market D-Wave is targeting. The Quantum Effect: 41% of Large UK Enterprises Surveyed Expect Quantum Computing to Unlock More Than £100 Million in Value in as Little as One Year
• Neutral Sentiment: Coverage discussing whether Quantinuum will lift or pressure other quantum stocks highlights that the sector is being traded as one theme, which can amplify moves in QBTS on sentiment rather than company-specific news. Will Quantinuum Lift Other Quantum Stocks — Or Eat Their Lunch?
• Neutral Sentiment: Analysts and market commentary noted QBTS has already had a strong run this year, so some investors may be weighing whether the recent gains leave room for a pullback. QBTS soars 168% in 2025: Should you buy for 2026 or wait for pullback?
• Negative Sentiment: Rigetti’s separate federal funding headline is drawing attention to the broader quantum trade and could increase competition for investor capital within the sector. Rigetti Gains From Potential $100 Million U.S. Quantum R&D Backing

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on QBTS. Zacks Research upgraded shares of D-Wave Quantum from a "strong sell" rating to a "hold" rating in a research note on Tuesday, April 28th. Mizuho decreased their price target on shares of D-Wave Quantum from $31.00 to $29.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 13th. Cantor Fitzgerald reiterated an "overweight" rating and set a $40.00 price objective on shares of D-Wave Quantum in a research note on Wednesday, May 13th. Wall Street Zen lowered D-Wave Quantum from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. Finally, Roth Mkm increased their price objective on D-Wave Quantum from $30.00 to $40.00 and gave the stock a "buy" rating in a research note on Tuesday. Fourteen investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $36.40.

D-Wave Quantum Stock Performance

The company has a market capitalization of $10.20 billion, a price-to-earnings ratio of -24.40 and a beta of 2.05. 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 stock has a 50 day moving average price of $19.81 and a two-hundred day moving average price of $22.11.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its 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 during the quarter, compared to analyst estimates 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%.The firm's quarterly revenue was down 80.9% compared to the same quarter last year. During the same period last year, the company posted ($0.02) earnings per share. On average, analysts predict that D-Wave Quantum Inc. will post -0.43 EPS for the current fiscal year.

Insider Transactions at D-Wave Quantum

In related news, Director John D. Dilullo sold 8,000 shares of the firm's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $18.01, for a total value of $144,080.00. Following the transaction, the director owned 19,803 shares in the company, valued at $356,652.03. This trade represents a 28.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Rohit Ghai sold 10,000 shares of the firm's stock in a transaction dated 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 owned 27,778 shares in the company, valued at approximately $489,448.36. This represents a 26.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 383,553 shares of company stock worth $10,118,016 in the last ninety days. 1.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On D-Wave Quantum

A number of hedge funds have recently modified their holdings of QBTS. Vanguard Group Inc. lifted its stake in D-Wave Quantum by 41.2% in the 3rd quarter. Vanguard Group Inc. now owns 38,454,869 shares of the company's stock valued at $950,220,000 after acquiring an additional 11,218,255 shares in the last quarter. UBS Group AG lifted its position in D-Wave Quantum by 541.6% during the 3rd 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. Geode Capital Management LLC lifted its position in D-Wave Quantum by 11.5% during the 4th quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company's stock worth $220,085,000 after buying an additional 866,405 shares in the last quarter. State Street Corp lifted its position in D-Wave Quantum by 5.3% during the 4th quarter. State Street Corp now owns 7,707,085 shares of the company's stock worth $201,540,000 after buying an additional 385,809 shares in the last quarter. Finally, Marex Group plc increased its position in shares of D-Wave Quantum by 74.9% during the 4th quarter. Marex Group plc now owns 4,592,656 shares of the company's stock worth $120,098,000 after purchasing an additional 1,966,500 shares during the last quarter. Institutional investors and hedge funds own 42.47% of the company's stock.

D-Wave Quantum Company Profile

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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