Core Insights - D-Wave Quantum Inc. (NYSE:QBTS) has seen a significant increase in share prices, growing by 19.1% week-on-week, driven by investor optimism regarding its new business unit focused on government contracts [1][3] - The stock experienced a rally for three consecutive days following the announcement of the new subsidiary, but faced profit-taking that led to a decline of 6.02% on Friday [2] - The intra-week high for D-Wave Quantum was recorded at 27.4%, indicating strong market interest [3] Company Developments - The newly formed subsidiary will be led by Jack Sears Jr., who has extensive experience in government and public sector business [3] - Jack Sears Jr. will also join the executive team of D-Wave Quantum as the vice president for US government solutions [3] - CEO Alan Baratz emphasized the increasing need for quantum technologies to address complex national challenges, highlighting the strategic importance of the new business unit [4] Market Context - The formation of the subsidiary is part of a broader trend where the U.S. government seeks advanced problem-solving resources to tackle national security, defense, and infrastructure issues [4]

Group 1 - D-Wave Quantum Inc. has seen a significant stock price increase of 27% in the first four trading days of the month, with a 14.55% jump on Thursday, closing at $28.73 [1][2] - The recent rally is attributed to the formation of a new business unit focused on promoting quantum computing products and services for the US government, led by Jack Sears Jr. [2][4] - CEO Alan Baratz emphasized the growing need for quantum technologies to address complex national challenges, highlighting the importance of this new business unit in developing applications for national security and defense [3][4] Group 2 - The establishment of the government-focused business unit aims to facilitate rapid development of quantum applications to tackle infrastructure challenges [4]

Core Insights - D-Wave Quantum's third-quarter 2025 results indicate significant operational improvements, with gross profit reaching $2.7 million, a 156% increase year over year, and GAAP gross margin expanding by 1560 basis points to 71.4% [1] - The company reported adjusted gross profit of $2.9 million, up 131% year over year, with an adjusted gross margin of 77.7%, reflecting a 1050-bps expansion from the previous year [1] - For the first nine months of 2025, revenues surged to $21.8 million, a 235% increase year over year, and GAAP gross margin rose to 84.8% [1] Business Performance - D-Wave's margin growth is attributed to increased sales of high-margin systems and capacity agreements, particularly in Europe and Japan, along with improved efficiency in system deployment [2] - The company is experiencing faster growth in recurring platform revenues compared to traditional service revenues, contributing to overall margin enhancement [2] Financial Position - D-Wave ended the third quarter with a robust cash position of $836.2 million, providing ample resources for continued investment in R&D, regional expansion, infrastructure development, or potential acquisitions [3] - This strong financial standing offers D-Wave a competitive advantage in a market where many rivals depend on raising new capital [3] Competitive Landscape - IonQ reported a 222% year-over-year revenue increase in its third quarter, achieving a world-record 99.99% two-qubit gate fidelity, supported by a pro-forma cash position of $3.5 billion [4] - Rigetti Computing, on the other hand, reported only $1.9 million in revenues for the third quarter of 2025, but maintains a liquidity cushion of approximately $600 million [5] Stock Performance - D-Wave's shares have gained 1.2% over the past 30 days [6] - Analysts suggest an average price target for D-Wave Quantum that indicates a potential increase of 48.3% from the last closing price of $25.08 [9]

Core Insights - Wall Street analysts are projecting significant upside for quantum computing stocks, with some estimates suggesting gains of up to 264% by 2026, despite concerns about the realism of these targets [3][5][6] Group 1: Market Performance - Over the past year, quantum computing stocks such as IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have seen substantial gains, with Rigetti's peak increase reaching nearly 5,400% [2] - As of December 2, IonQ's stock closed below $47, while Rigetti's and D-Wave's stocks closed at levels that suggest potential increases of 113% and 114% respectively [4][5] Group 2: Analyst Projections - Analysts from B. Riley Securities and Needham have set price targets for IonQ and Rigetti at $100 and $51 respectively, indicating significant upside potential based on their current prices [4] - Ascendiant analyst Edward Woo has the most optimistic projection for Quantum Computing Inc., forecasting a 264% increase to $40 per share [5] Group 3: Industry Potential - The Boston Consulting Group estimates that quantum computing could generate up to $850 billion in global economic value by 2040, highlighting its long-term potential [6] - The technology is expected to take time to mature, similar to past innovations like the internet, which required years for businesses to fully leverage [8] Group 4: Financial Concerns - All four quantum computing companies are currently unprofitable and experiencing significant cash burn, raising concerns about their financial sustainability [10][15] - The price-to-sales (P/S) ratios for these companies are alarmingly high, with IonQ at 146 and Quantum Computing Inc. at nearly 2,900, indicating potential overvaluation and a bubble risk [12] Group 5: Competitive Landscape - The emergence of large tech companies, referred to as the "Magnificent Seven," poses a threat to the market share of smaller quantum computing firms, as these companies have the resources to develop their own quantum technologies [14][15]

Core Insights - Quantum computing is anticipated to be a transformative technology trend in the coming decade, with significant implications for artificial intelligence and cryptography [1] - D-Wave Quantum is highlighted as a leading investment opportunity within the quantum computing sector, despite the speculative nature of the technology [2] Company Overview - D-Wave Quantum is recognized as a promising pure-play in the quantum computing market, but investing in such companies carries a high level of risk [3] - The company's revenue for Q3 was reported at $3.7 million, a substantial increase from $1.9 million in the same quarter the previous year, while the bottom-line loss rose to $140 million, an increase of $117.3 million from the prior year [4] Financial Metrics - D-Wave has a market capitalization of approximately $9 billion, with a current stock price of $3.65, reflecting a valuation of about 309 times this year's expected sales [6] - The company has a gross margin of 82.82%, indicating strong potential for profitability in the long term [6] Competitive Landscape - D-Wave faces competition from major technology companies such as Alphabet, Microsoft, and Nvidia, which could impact its market position if they achieve superior advancements in quantum technology [7] Investment Considerations - D-Wave is characterized as a high-risk investment with the potential for significant returns if the company achieves breakthroughs in quantum computing [8] - The stock is suggested to be suitable primarily for investors with a high risk tolerance, as it could yield substantial returns if D-Wave maintains its leadership in the quantum tech space [8]

Core Viewpoint - Quantum stocks are showing signs of recovery after a significant correction, with IonQ, Rigetti Computing, and D-Wave Quantum experiencing bullish momentum and breaking higher on increased volume [1][3][13]. Group 1: Market Context - The selloff in quantum stocks was triggered by fears of a broader collapse in AI stocks, leading to a risk-off behavior in the market [2]. - Some quantum stocks experienced declines of up to 65% from their October highs, indicating a dramatic reset after a strong performance earlier in the year [2]. - The recent pullback is viewed as a necessary shakeout for late-to-enter traders, allowing for a potential rebound as speculative appetite returns [2][3]. Group 2: Company Performances - **IonQ**: - IonQ is recognized as the leader in the quantum sector, with the largest market capitalization and significant annual revenue [5]. - The stock surged nearly 12% in a single session after a period of consolidation, indicating a strong technical breakout [5][6]. - Maintaining above the breakout zone is crucial for continued positive momentum, with pullbacks into this region seen as favorable entry points [6]. - **D-Wave Quantum**: - D-Wave has shown one of the strongest rebounds, recovering from a more than 60% drop during the selloff [8]. - The stock has formed a tight base and is positioned for further gains as long as it holds above recent breakout levels [9]. - **Rigetti Computing**: - Rigetti's stock has mirrored the broader sector's trends, with a significant pullback followed by a breakout above resistance [11]. - The reclaiming of key levels is a positive sign, and if it remains above the breakout point, momentum could continue to rise [11][12]. Group 3: Investment Considerations - Quantum stocks are still considered highly speculative, but the technical outlook has improved significantly across the sector [13]. - All three companies have reclaimed key levels and attracted renewed buying interest, suggesting a potential new upward trend in quantum computing [13][14]. - While volatility remains high, the recent market shakeout has reset sentiment, creating cleaner setups for investors willing to take on higher-risk opportunities [14].

QBTS Stock surges in 2025 as quantum computing gains investor momentum.SOPA Images/LightRocket via Getty ImagesD-Wave Quantum (QBTS) stock has declined by 24.2% over the past 21 trading days. This recent downturn underscores renewed worries regarding D-Wave’s speculative valuation along with ongoing operating losses. However, significant drops like this often prompt a more challenging inquiry: is this weakness a temporary issue, or is it indicative of deeper flaws in the company’s situation?Before evaluatin ...

Company Overview - D-Wave Quantum is currently valued at $7.7 billion, with a revenue of $24 million and trading at $25.08 [2] - The company has experienced a revenue growth of 156.2% over the last 12 months, but has an operating margin of -355.2% [2] Stock Performance - D-Wave Quantum stock has declined by 24.2% over the past 21 trading days, raising concerns about its speculative valuation and ongoing operating losses [2] - The stock has a P/E multiple of -21.2 and a P/EBIT multiple of -21.3, indicating moderate operational performance and a very high valuation, branding the stock as unattractive [3] Downturn Resilience - The stock has performed significantly worse than the S&P 500 index during various economic downturns, both in terms of the extent of decline and the speed of recovery [4] - From a high of $12.40 on August 9, 2022, the stock fell 96.7% to $0.41 by May 12, 2023, while the S&P 500 experienced a peak-to-trough decline of 25.4% [8] - The stock fully recovered to its pre-crisis peak by May 19, 2025, and reached a high of $44.78 on October 15, 2025, before trading at $25.08 [8]

Evercore ISI initiated coverage on its first quantum computing company, D-Wave Quantum (QBTS), with an outperform rating. D-Wave stock has advanced 206% in 2025, tops among quantum computing stocks. Evercore ISI analyst Mark Lipacis set a price target of 44 on D-Wave stock in a report published late Wednesday. "We think investors win three ways with D-Wave," Lipacis said in… ...

Core Insights - Quantum computing is a transformative technology with the potential to outperform traditional supercomputers, as demonstrated by D-Wave Quantum's capabilities [1][3] - The competition between D-Wave and IBM highlights the challenges and opportunities in the quantum computing sector, particularly in achieving "quantum advantage" [2][12] D-Wave Overview - D-Wave specializes in annealing quantum computers, claiming to have solved problems beyond the reach of supercomputers [3][4] - The company reported revenue of $21.8 million for the first three quarters of 2025, a significant increase from $6.5 million in 2024, but also faced an operating loss of $65.5 million due to rising expenses [6] - D-Wave is also exploring quantum gate technology to enhance its capabilities, claiming to be the only company utilizing both annealing and gate-based methods [5] IBM Overview - IBM has a long history in technology and has made significant advancements in quantum computing, including the launch of its Qiskit software and cloud-based quantum devices [7][8] - The company announced its new Nighthawk quantum processor, aiming to achieve quantum advantage by the end of 2026, and plans to develop a fault-tolerant quantum computer by 2029 [10][11] - IBM's revenue for the first three quarters of 2025 was $47.8 billion, reflecting a 6% year-over-year increase, with a net income of $5 billion [11] Investment Comparison - When comparing D-Wave and IBM for investment, technological superiority and share price valuation are critical factors [12][14] - D-Wave's price-to-sales ratio remains high compared to its historical levels and is significantly above IBM's, suggesting that IBM may offer better value [14] - Given IBM's advancements and financial stability, it is positioned as the superior long-term investment in quantum computing compared to D-Wave [14]