D-Wave Quantum (NASDAQ:QBTS) Shares Down 3% - Should You Sell?

Key Points

• D-Wave Quantum shares fell 3% to $11.77 amid sector-wide selling, higher-rate concerns and valuation worries, with trading volume below its average.
• The company has announced potentially positive developments, including an enterprise-focused partnership with South Korea’s LG CNS and third-party recognition of customer Shionogi’s quantum drug-discovery work, though the LG agreement does not guarantee revenue.
• Investors face significant risks ahead of the November 10 earnings report, including ongoing losses, a prior revenue and EPS miss, heavy investment needs and a newly publicized securities class action. Analysts remain broadly bullish, with a $36.27 consensus target, but one brokerage downgraded the stock to “hold.”

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report) shares dropped 3% on Wednesday. The stock traded as low as $11.50 and last traded at $11.77. Approximately 13,809,134 shares were traded during trading, a decline of 46% from the average session volume of 25,784,371 shares. The stock had previously closed at $12.13.

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 pursue enterprise quantum-optimization use cases and expand adoption in the Asian market. The partnership could support future commercial activity, although the agreement does not guarantee revenue. D-Wave Enters MoU With LG CNS to Drive Quantum Computing Adoption in South Korea
• 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 third-party validation of D-Wave’s technology and potential healthcare applications. D-Wave Customer Shionogi Wins First Place in NEDO Quantum Computing Challenge’s Quality of Life Category
• Neutral Sentiment: D-Wave will report third-quarter 2026 results before the market opens on November 10. Investors will be watching bookings, revenue growth, cash usage and losses after the company’s prior quarter missed consensus revenue and EPS estimates. D-Wave Quantum to Report Third Quarter 2026 Financial Results on November 10, 2026
• Neutral Sentiment: Brokerages reportedly have an average price target of $36.27, but that target contrasts with concerns that QBTS may already reflect substantial future growth after its dramatic multiyear rally. D-Wave Quantum Stock Has Average Target Price of $36.27 According to Brokerages
• Negative Sentiment: Multiple law firms publicized a securities class action alleging that D-Wave and certain executives made misleading statements about growth prospects during the February 26–August 25, 2026 class period. Investors have until December 15, 2026 to seek lead-plaintiff status, adding legal and reputational overhang. Pomerantz Law Firm Announces the Filing of a Class Action Against D-Wave Quantum Inc.
• Negative Sentiment: Analysts cited sector-wide selling and higher-rate caution as immediate reasons for the stock’s decline. Separate valuation commentary argues that QBTS looks fully priced relative to its financial performance, including continuing losses and heavy investment needs. Why Is D-Wave Quantum Stock Falling on Wednesday?

Analysts Set New Price Targets

Several brokerages have recently commented on QBTS. Zacks Research lowered shares of D-Wave Quantum from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 18th. Jefferies Financial Group set a $40.00 price objective on shares of D-Wave Quantum in a research note on Friday, August 7th. Wedbush assumed coverage on shares of D-Wave Quantum in a report on Monday, August 3rd. They issued an "outperform" rating and a $40.00 price objective for the company. Weiss Ratings raised shares of D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, August 28th. Finally, Roth Capital restated a "buy" rating and set a $30.00 target price on shares of D-Wave Quantum in a report on Thursday, August 6th. 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. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $36.27.

D-Wave Quantum Stock Performance

The firm has a 50 day moving average of $15.92 and a two-hundred day moving average of $19.64. The stock has a market cap of $4.35 billion, a P/E ratio of -16.58 and a beta of 2.18. The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.10) EPS for the quarter, missing the consensus estimate 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 period in the prior year, the firm earned ($0.08) earnings per share. The business's quarterly revenue was down 0.6 on a year-over-year basis. On average, research analysts predict that D-Wave Quantum Inc. will post -0.46 EPS for the current fiscal year.

Institutional Investors Weigh In On D-Wave Quantum

Hedge funds have recently made changes to their positions in the stock. Fiduciary Financial Advisors bought a new position in D-Wave Quantum in the second quarter worth $25,000. Parallel Advisors LLC raised its stake in shares of D-Wave Quantum by 545.5% in the 1st quarter. Parallel Advisors LLC now owns 1,788 shares of the company's stock valued at $26,000 after buying an additional 1,511 shares in the last quarter. Adirondack Trust Co. raised its stake in shares of D-Wave Quantum by 267.3% in the 3rd quarter. Adirondack Trust Co. now owns 1,649 shares of the company's stock valued at $27,000 after buying an additional 1,200 shares in the last quarter. PeakShares LLC bought a new position in shares of D-Wave Quantum during the 1st quarter worth about $29,000. Finally, Latitude Advisors LLC bought a new position in shares of D-Wave Quantum during the 3rd quarter worth about $38,000. Institutional investors own 42.47% of the company's stock.

About D-Wave Quantum

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.

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