D-Wave Quantum's stock got crushed in November's tech sell-off.While it was far from the only quantum computing company stock to see red in November, D-Wave Quantum's (QBTS +5.09%) 38.8% drop was one of the worst -- only Rigetti Computing's shares fell further. Thankfully for investors, shares of D-Wave have recovered somewhat in the first few days of December, but they remain more than 36.5% off their October high. Here's what's going on and what might be in store for the quantum company.November was a rou ...

Core Insights - The year 2025 has seen significant advancements in quantum computing, with clearer engineering roadmaps and major capital commitments from key players like IBM and Amazon [1][2] - Investor expectations have shifted towards near-term commercialization, with increased capital deployment anticipated in 2026 [3] Company Developments - IBM launched a new quantum data center and outlined a multi-year plan for fault-tolerant systems, boosting market confidence [1] - Amazon's AWS introduced the Ocelot quantum chip, which aims to reduce error-correction overhead by up to 90% [1] - Honeywell's Quantinuum raised approximately $600 million, achieving a valuation close to $10 billion, supported by a DARPA contract [2] - Google's 105-qubit Willow chip achieved a significant milestone by demonstrating a quantum advantage, reportedly 13,000 times faster than classical supercomputers for molecular simulations [2] - IonQ reported a remarkable 222% year-over-year revenue growth in Q3 2025, achieving a world-record 99.99% two-qubit gate fidelity [7][10] - D-Wave's Advantage2 system, a 4,400+ qubit quantum computer, became available for real-world applications, with revenues increasing by 100% year-over-year [11][12] Market Trends - The momentum in quantum computing suggests a rise in customer engagements and collaborations between industry and government, particularly in materials science and pharmaceuticals [3] - Both IonQ and D-Wave are projected to experience strong earnings and sales growth in 2026, reflecting the active progress made in 2025 [9][13] Financial Performance - IonQ's stock has gained 26.1% year-to-date, with expectations of 66.2% earnings growth and 69% sales growth in 2026 [10] - D-Wave's stock surged 221.4% year-to-date, with projected earnings growth of 9.3% and sales growth of 61.3% in 2026 [13]

D-Wave logo overlaying a quantum computing chip. Key Points After more than a month of sharp declines, shares of D-Wave Quantum suddenly spiked 22% in the first few days of December. The company announced a new government-focused business unit, sparking speculation about future U.S. defense contracts. High R&D costs and a long path to profitability continue to make D-Wave a speculative investment despite short-term rallies. Interested in D-Wave Quantum Inc.? Here are five stocks we like better. D-W ...

Core Viewpoint - Quantum computing stocks are experiencing unsustainably high valuations, driven by hype rather than substantial technological advancements or customer traction [3][8][9]. Group 1: Market Performance - Since the launch of ChatGPT in late 2022, shares of the Roundhill Generative AI & Technology ETF and the Invesco QQQ Trust have increased by 137% and 84% respectively, significantly outperforming the S&P 500 [1]. - Quantum computing stocks, particularly IonQ, Rigetti Computing, and D-Wave Quantum, have surged over 1,000% since the onset of the AI revolution [6]. Group 2: Valuation Concerns - Current valuations of quantum computing stocks are compared to the dot-com bubble era, where companies had inflated price-to-sales (P/S) ratios without sustainable business models [11][13]. - Quantum computing pure plays are trading at P/S ratios significantly higher than those of leading companies during the dot-com bubble, which peaked at 31 to 51 for firms like Microsoft and Amazon [15]. Group 3: Industry Dynamics - The rise in quantum computing stock prices is largely attributed to speculative trading and hype in online forums, transforming these stocks into "meme stocks" [9]. - Despite significant investments in acquisitions and new technologies, companies like IonQ, Rigetti, and D-Wave have not achieved meaningful technological breakthroughs or substantial enterprise customer traction [8]. Group 4: Future Outlook - There is a belief that a correction in quantum computing stock prices is likely, with indications that insiders at D-Wave and Rigetti are selling shares, suggesting a lack of confidence in sustained high valuations [17][18]. - The expectation is that quantum computing stocks may experience a significant decline in 2026, with pure plays being particularly vulnerable [18].

Core Insights - Wall Street analysts expect shares of Rigetti Computing and D-Wave Quantum to increase over the next year, with unanimous positive outlooks from analysts covering both companies [1][2]. Rigetti Computing - The median target price for Rigetti Computing is $40 per share, indicating a 42% upside from its current price of $28, with the highest target suggesting an 82% upside [4]. - Rigetti specializes in superconducting quantum computing, utilizing microscopic superconducting circuits cooled to near absolute zero to create qubits, which allow for more efficient problem-solving compared to classical computers [5]. - The company benefits from vertical integration, controlling its supply chain to achieve cost efficiencies, and has developed the first multi-chip quantum processor, potentially giving it an edge in scaling fault-tolerant systems [6]. - Rigetti's valuation is a concern, with a price-to-sales (P/S) ratio of 1,080, significantly higher than the most expensive stock in the S&P 500, indicating potential unsustainability [9]. D-Wave Quantum - The median target price for D-Wave Quantum is $40 per share, suggesting a 48% upside from its current price of $27, with the highest target indicating a 77% upside [10]. - D-Wave focuses on quantum annealers, which excel at solving optimization problems but cannot run most quantum algorithms, making them a niche technology [11]. - D-Wave's revenue increased by 100% to $3.7 million, but it reported a non-GAAP net loss of $18.1 million, with a significant increase in outstanding shares due to stockholder dilution [13]. - D-Wave's valuation is also concerning, trading at 325 times sales, which is deemed unreasonably expensive given the projected growth rate of the quantum computing market at 21% per year [14].

Core Insights - D-Wave Quantum has experienced significant stock price volatility, rising nearly 5,000% from a low of around $0.40 in early 2023 to a current price of $26.95, despite concerns about the company's long-term viability [1][6] - The company reported revenue of $22 million for the first three quarters of 2025, representing over 200% growth compared to the same period in 2024, indicating rapid revenue growth [2] - Despite positive revenue growth, D-Wave's business model is considered fragile, with a lack of significant customer commitments to quantum computing technology [4][7] Company Overview - D-Wave is positioned as a first mover in the quantum computing space, having sold its first quantum computer in 2011 for approximately $10 million [5] - The company's market capitalization is currently $9 billion, with a gross margin of 82.82% [6][7] - D-Wave's revenue in 2024 was only $8.8 million, which is less than its initial sale 13 years prior, highlighting inconsistent revenue growth despite ongoing technological development [7] Competitive Landscape - D-Wave faces competition from major players in the quantum computing industry, including Alphabet, Intel, and Microsoft, which may challenge its market position [8] - The company’s remaining performance obligations (RPOs) decreased from $4 million in Q3 2024 to $2.9 million in Q3 2025, indicating potential challenges in securing future revenue [9] - D-Wave's bookings for 2025 are down 7% compared to the same period in 2024, suggesting uncertainty in future growth prospects [10] Management and Investor Sentiment - Insider trading activity, particularly CEO Alan Baratz selling $43 million of his shares, raises concerns about management's confidence in the company's future [11] - The overall sentiment towards investing in D-Wave is cautious, with doubts about its competitive edge and long-term trajectory [11]

Core Insights - Quantum computing is anticipated to drive significant technological advancements, with Bank of America analysts suggesting it could be humanity's most significant breakthrough since fire [1] Company Overview - D-Wave Quantum is recognized as a leading pure-play quantum computing company and is the first commercial provider of quantum computers [2] - The company has established a dedicated business unit to promote the adoption of its quantum technologies within U.S. government agencies [2][3] Leadership and Strategy - The new division is led by Jack Sears Jr., an experienced executive in government and public sectors, focusing on government initiatives [3] - The growing federal interest in quantum capabilities positions D-Wave to capitalize on opportunities as agencies seek advanced technological solutions [3] Stock Performance - Following recent announcements, D-Wave's stock surged approximately 5% on December 2, followed by an additional 11.5% the next day, and a total increase of 14.6% by December 4 [4] - Year-to-date, the stock has risen 224%, prompting discussions among investors about the sustainability of this momentum [4] Market Position - D-Wave Quantum, headquartered in Palo Alto, has a market capitalization exceeding $10 billion and offers a range of products including Advantage quantum systems and the Leap platform [5] - The stock has experienced remarkable growth, with an 860% increase over the past 52 weeks and a 77% rise in the last three months [6] - Recently, the stock advanced 20% in just five trading days, driven by government partnerships and strong quarterly performance [6] Valuation Metrics - Currently, D-Wave's stock trades at a high valuation of 395.54 times sales, indicating a significant premium investors are willing to pay for its leadership in quantum technologies and growth potential [7]

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]