D-Wave Quantum (NASDAQ:QBTS) Reaches New 1-Year Low - Should You Sell?

Key Points

• D-Wave Quantum shares hit a new 52-week low of $11.22, reflecting broader selling in quantum-computing stocks and concerns about high valuations, rising rates and weak near-term fundamentals.
• The company’s latest quarter missed expectations, reporting $3.08 million in revenue versus $4.03 million expected and an adjusted loss of $0.10 per share. D-Wave also faces a securities class-action lawsuit alleging misleading statements, though the claims have not been proven.
• Despite the risks, D-Wave announced a strategic relationship with South Korea’s LG CNS and received application validation through customer Shionogi. Analysts maintain a “Moderate Buy” consensus with an average $36.27 target, but ratings range from “Sell” to “Buy” and the stock remains highly volatile.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report)'s stock price reached a new 52-week low on Thursday. The stock traded as low as $11.22 and last traded at $11.6620, with a volume of 1,240,033 shares trading hands. The stock had previously closed at $11.77.

More D-Wave Quantum News

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

• Positive Sentiment: D-Wave signed a non-binding memorandum of understanding with South Korea’s LG CNS to promote quantum-computing applications for enterprise optimization. The relationship could expand D-Wave’s commercial reach in Asia, although it does not yet represent a firm contract or revenue commitment. LG CNS and D-Wave announce strategic relationship
• Positive Sentiment: D-Wave customer Shionogi won first place in the Quality of Life category of Japan’s NEDO Quantum Computing Challenge for drug-discovery research, providing validation for potential real-world applications of D-Wave’s technology. Shionogi wins NEDO quantum computing challenge
• Neutral Sentiment: Brokerage data cited an average price target of approximately $36.27, but the target is difficult to assess given QBTS’s substantial volatility, negative earnings and wide gap between valuation and current revenue. D-Wave average target price
• Negative Sentiment: Several law firms publicized a securities class-action lawsuit against D-Wave and certain officers. The allegations include misleading statements about the company’s financial and operational outlook, particularly after second-quarter revenue of $3.08 million came in well below analyst expectations. The allegations have not been proven, but the litigation adds reputational, financial and uncertainty risks; investors have until December 15, 2026, to seek lead-plaintiff status. Pomerantz class-action announcement
• Negative Sentiment: Recent coverage also highlighted sector-wide selling, interest-rate caution and concerns that quantum-computing companies are valued well above the revenue they currently generate. D-Wave’s latest reported quarter missed both EPS and revenue estimates, reinforcing near-term fundamental concerns. Why D-Wave Quantum stock is falling

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on QBTS. Zacks Research downgraded shares of D-Wave Quantum from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 18th. Canaccord Genuity Group set a $35.00 price objective on shares of D-Wave Quantum in a research report on Thursday, August 6th. Roth Capital restated a "buy" rating and issued a $30.00 target price on shares of D-Wave Quantum in a research report on Thursday, August 6th. Weiss Ratings upgraded shares of D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, August 28th. Finally, Jefferies Financial Group set a $40.00 target price on D-Wave Quantum in a research report on Friday, August 7th. Thirteen investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $36.27.

D-Wave Quantum Stock Performance

The company has a debt-to-equity ratio of 0.03, a current ratio of 20.55 and a quick ratio of 20.42. The company has a fifty day moving average price of $15.76 and a two-hundred day moving average price of $19.55. The firm has a market cap of $4.37 billion, a price-to-earnings ratio of -16.56 and a beta of 2.18.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.02). D-Wave Quantum had a negative return on equity of 26.67% and a negative net margin of 2,001.59%. The business had revenue of $3.08 million during the quarter, compared to the consensus estimate of $4.03 million. During the same quarter in the previous year, the firm earned ($0.08) earnings per share. The firm's revenue for the quarter was down 0.6 compared to the same quarter last year. As a group, equities research analysts expect that D-Wave Quantum Inc. will post -0.46 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. International Assets Investment Management LLC increased its holdings in shares of D-Wave Quantum by 158.1% during the 3rd quarter. International Assets Investment Management LLC now owns 40,000 shares of the company's stock valued at $663,000 after acquiring an additional 24,502 shares during the last quarter. Choreo LLC lifted its position in D-Wave Quantum by 21.9% during the 3rd quarter. Choreo LLC now owns 20,615 shares of the company's stock worth $342,000 after acquiring an additional 3,705 shares during the last quarter. Latitude Advisors LLC acquired a new position in D-Wave Quantum during the 3rd quarter worth $38,000. Flagship Harbor Advisors LLC boosted its holdings in D-Wave Quantum by 4.1% during the third quarter. Flagship Harbor Advisors LLC now owns 55,868 shares of the company's stock valued at $926,000 after acquiring an additional 2,184 shares during the period. Finally, Corecam Pte. Ltd. grew its position in shares of D-Wave Quantum by 32.6% in the third quarter. Corecam Pte. Ltd. now owns 44,519 shares of the company's stock valued at $722,000 after purchasing an additional 10,947 shares during the last quarter. 42.47% of the stock is currently owned by institutional investors and hedge funds.

D-Wave Quantum Company Profile

D-Wave Quantum Inc NASDAQ: QBTS is a quantum computing company that develops and provides quantum computing systems, software, and related services. The company focuses on both quantum annealing and gate-model quantum computing, with the goal of helping organizations address complex optimization, artificial intelligence, materials science, cybersecurity, and other computational challenges.

Its product portfolio includes quantum computing systems, hybrid quantum-classical solutions, and the Leap quantum cloud service, which gives customers access to D-Wave systems through the cloud.

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.