D-Wave Quantum (NYSE:QBTS) Stock Price Up 13.2% - Should You Buy?

Key Points

• D-Wave Quantum shares jumped 13.2% as trading volume surged, with the stock reaching as high as $31.55 amid heavy momentum buying. The move reflects strong investor interest in the quantum-computing name.
• The main catalyst appears to be reported U.S. government support, including a proposed $100 million CHIPS Act funding package for D-Wave and broader talk of billions in federal support for quantum firms. Investors see this as validation of the sector and a potential growth boost.
• Despite the rally, D-Wave’s latest earnings showed weak fundamentals, including revenue of $2.86 million that missed expectations and a steep year-over-year decline. Analysts remain mixed overall, though the stock still carries a consensus Moderate Buy rating with a $34.67 target price.

D-Wave Quantum Inc. (NYSE:QBTS - Get Free Report) shares rose 13.2% on Friday . The stock traded as high as $31.55 and last traded at $29.13. Approximately 140,625,580 shares traded hands during mid-day trading, an increase of 347% from the average daily volume of 31,456,387 shares. The stock had previously closed at $25.74.

Trending Headlines about D-Wave Quantum

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

• Positive Sentiment: The biggest driver for QBTS is the reported U.S. government support for quantum computing, including a proposed $100 million CHIPS Act funding package for D-Wave, which investors view as a major validation of the company’s technology and growth prospects. Article Title
• Positive Sentiment: Broader headlines that the Trump administration is committing $2 billion to quantum firms have lifted the entire group, including D-Wave, as traders bet federal money could accelerate commercialization and industry adoption. Article Title
• Positive Sentiment: Quantum stocks continued to rally across the sector, with D-Wave included in a broader move that added billions in market value, reinforcing momentum-driven buying in QBTS. Article Title
• Neutral Sentiment: Trading activity has also been elevated, with unusually heavy call-option buying suggesting speculation remains strong, but this is more a sign of interest than a clear fundamental catalyst.
• Negative Sentiment: A vice president sold shares under a pre-arranged 10b5-1 plan, which may slightly weigh on sentiment even though the transaction does not necessarily signal concern about the business. Article Title

Analyst Ratings Changes

QBTS has been the subject of several research analyst reports. Cantor Fitzgerald reissued an "overweight" rating and issued a $40.00 target price on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Wall Street Zen downgraded shares of D-Wave Quantum from a "hold" rating to a "sell" rating in a research report on Saturday, February 7th. Northland Securities initiated coverage on shares of D-Wave Quantum in a research report on Monday, April 20th. They issued a "market perform" rating and a $22.00 target price for the company. Benchmark reissued a "buy" rating and issued a $35.00 target price on shares of D-Wave Quantum in a research report on Friday, January 23rd. Finally, Needham & Company LLC reissued a "buy" rating and issued a $40.00 target price on shares of D-Wave Quantum in a research report on Wednesday, May 13th. Fourteen equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $34.67.

D-Wave Quantum Trading Up 13.2%

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 business's 50-day moving average is $18.20 and its two-hundred day moving average is $22.16. The firm has a market cap of $10.78 billion, a P/E ratio of -25.78 and a beta of 1.95.

D-Wave Quantum (NYSE:QBTS - Get Free Report) last announced its quarterly earnings data 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. D-Wave Quantum had a negative net margin of 2,957.23% and a negative return on equity of 44.06%. The business had revenue of $2.86 million during the quarter, compared to the consensus estimate of $4.19 million. During the same quarter in the prior year, the firm earned ($0.02) EPS. The company's revenue for the quarter was down 80.9% compared to the same quarter last year. As a group, analysts expect that D-Wave Quantum Inc. will post -0.44 earnings per share for the current fiscal year.

Insider Buying and Selling at D-Wave Quantum

In related news, Director John D. Dilullo sold 8,000 shares of the business's stock in a transaction dated 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 of the company's stock, valued at $356,652.03. This represents a 28.77% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Rohit Ghai sold 10,000 shares of the business's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $17.62, for a total transaction of $176,200.00. Following the sale, the director directly owned 27,778 shares of the company's stock, valued at approximately $489,448.36. This represents a 26.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 54,801 shares of company stock worth $1,011,586 in the last quarter. 3.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of QBTS. Vanguard Group Inc. grew its position 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 worth $950,220,000 after purchasing an additional 11,218,255 shares during the last quarter. UBS Group AG grew its position in D-Wave Quantum by 541.6% in the 3rd quarter. UBS Group AG now owns 12,089,703 shares of the company's stock worth $298,737,000 after purchasing an additional 10,205,427 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in D-Wave Quantum by 136,842.4% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,194,866 shares of the company's stock worth $83,546,000 after purchasing an additional 3,192,533 shares during the last quarter. Clear Street Group Inc. bought a new position in D-Wave Quantum in the 3rd quarter worth about $75,344,000. Finally, Goldman Sachs Group Inc. grew its position in D-Wave Quantum by 311.6% in the 4th quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company's stock worth $92,781,000 after purchasing an additional 2,685,980 shares during the last quarter. Institutional investors 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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