Why Shares of D-Wave Quantum Are Sinking This Week

Core Viewpoint - D-Wave Quantum's shares have fallen nearly 15% following the announcement of an at-the-market stock offering to raise up to $400 million, despite positive developments in the quantum computing sector [1][2][5]. Group 1: Stock Performance - D-Wave's stock has experienced a significant increase of 1,268% over the past year, currently trading at 191 times forward sales [6]. - The stock has been trading lower, with a decline of 4.44% noted on the last trading day [1]. Group 2: Capital Raising and Financial Position - The ATM stock offering will allow D-Wave to issue new shares, which could be dilutive to existing shareholders [2]. - As of March 31, D-Wave reported sufficient cash balances to fund operations until profitability, with plans to use proceeds from the offering for general corporate purposes, including capital expenditures and business expansion [4]. Group 3: Industry Context - The announcement of D-Wave's capital raise is seen as disappointing, especially during a week when Nvidia's CEO highlighted the potential of quantum computing, which positively impacted other stocks in the sector [5].