D-Wave Quantum (NASDAQ:QBTS) Stock Falls 3.9% - Time to Sell?

Key Points

• D-Wave Quantum shares fell 3.9% to $11.63 in mid-day trading, with volume well below the stock’s average. The company remains highly speculative, reporting modest revenue, substantial losses, and a recent earnings and revenue miss.
• Potential catalysts include European expansion, a reported €10 million Italian system deal, a renewed SkyWater Technology agreement, and possible stronger bookings from planned fourth-quarter system shipments.
• Investor sentiment faces additional pressure from a federal securities class-action lawsuit alleging that D-Wave overstated its business prospects and growth. Despite the legal and financial risks, analysts maintain a “Moderate Buy” consensus with a $36.27 average price target.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report)'s stock price was down 3.9% on Thursday. The company traded as low as $11.40 and last traded at $11.63. 13,558,607 shares changed hands during mid-day trading, a decline of 48% from the average daily volume of 26,074,996 shares. The stock had previously closed at $12.10.

Key D-Wave Quantum News

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

• Positive Sentiment: D-Wave’s European expansion remains a potential catalyst. The company is advancing deployment of its Advantage2 system, including a reported €10 million VoltaB1 system deal in Italy, and has renewed a multiyear semiconductor-manufacturing agreement with SkyWater Technology. Is Italy System Deployment Altering The Investment Case For D Wave Quantum?
• Positive Sentiment: Some coverage points to growing bookings and the potential for stronger sales if D-Wave completes two planned fourth-quarter annealing-computer shipments and moves more cloud customers into production use. Where Will D-Wave Quantum Stock Be in 5 Years?
• Neutral Sentiment: Analysts and financial commentators continue to describe QBTS as a highly speculative long-term investment: quantum computing could eventually create substantial growth, but commercial adoption may take years. The company currently has modest revenue and continues to report substantial losses. Forget the Anthropic IPO. Here Are 6 Stocks Worth Watching.
• Negative Sentiment: Multiple law firms publicized an existing federal securities class action against D-Wave and certain officers. The complaints allege that the company overstated its business, financial prospects, and growth momentum, with allegations tied to an August 25 disclosure, a revenue shortfall, and a CFO departure. Investors who purchased shares from approximately February 26 or 27 through August 25, 2026, may seek lead-plaintiff status by December 15, 2026. The allegations have not been proven. Pomerantz Class Action Announcement
• Negative Sentiment: The litigation publicity is likely weighing on investor sentiment by raising potential financial costs, management distraction, and uncertainty over the accuracy of prior growth claims. It also reinforces concerns about QBTS’s premium valuation despite ongoing losses and limited current revenue.

Analysts Set New Price Targets

QBTS has been the topic of a number of analyst reports. Canaccord Genuity Group set a $35.00 target price on D-Wave Quantum in a research report on Thursday, August 6th. Roth Capital reissued a "buy" rating and issued a $30.00 price target on shares of D-Wave Quantum in a report on Thursday, August 6th. Benchmark initiated coverage on D-Wave Quantum in a report on Monday, July 27th. They issued a "buy" rating and a $30.00 price target for the company. Jefferies Financial Group set a $40.00 price objective on D-Wave Quantum in a research note on Friday, August 7th. Finally, Weiss Ratings upgraded D-Wave Quantum from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, August 28th. Thirteen research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $36.27.

D-Wave Quantum Stock Performance

The company's fifty day simple moving average is $16.39 and its two-hundred day simple moving average is $19.63. The company has a market capitalization of $4.30 billion, a price-to-earnings ratio of -16.38 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 earnings results on Thursday, August 6th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.02). The company had revenue of $3.08 million during the quarter, compared to analyst estimates of $4.03 million. D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The business's revenue for the quarter was down 0.6 compared to the same quarter last year. During the same quarter last year, the company posted ($0.08) EPS. Equities research analysts predict that D-Wave Quantum Inc. will post -0.46 earnings per share for the current fiscal year.

Hedge Funds Weigh In On D-Wave Quantum

Hedge funds have recently added to or reduced their stakes in the business. CoreCap Advisors LLC raised its holdings in shares of D-Wave Quantum by 9.2% during the second quarter. CoreCap Advisors LLC now owns 6,115 shares of the company's stock worth $147,000 after purchasing an additional 515 shares during the period. Presilium Private Wealth LLC boosted its holdings in shares of D-Wave Quantum by 6.9% in the 1st quarter. Presilium Private Wealth LLC now owns 10,657 shares of the company's stock valued at $154,000 after buying an additional 687 shares during the period. GAMMA Investing LLC boosted its holdings in shares of D-Wave Quantum by 21.7% in the 3rd quarter. GAMMA Investing LLC now owns 3,922 shares of the company's stock valued at $65,000 after buying an additional 698 shares during the period. Private Advisor Group LLC boosted its holdings in shares of D-Wave Quantum by 2.4% in the 1st quarter. Private Advisor Group LLC now owns 33,341 shares of the company's stock valued at $481,000 after buying an additional 781 shares during the period. Finally, Fiduciary Financial Advisors bought a new stake in shares of D-Wave Quantum during the 2nd quarter valued at about $25,000. Institutional investors and hedge funds own 42.47% of the company's stock.

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.

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