D-Wave Quantum: How Does QBTS Stock Fall To $1?

Group 1 - D-Wave Quantum stock (NYSE: QBTS) has surged by 2,200% over the past year, driven by excitement for quantum computing, the AI surge, and strategic initiatives like partnerships and conferences [2][3] - The company recently announced its first Qubits Japan 2025 quantum computing user conference in Tokyo, with an 83% increase in reservations for its technology in the Asia Pacific region [3] - D-Wave operates on a modest revenue base of $22 million, with a net income margin of -1,260% and an operating cash flow margin of -220%, indicating significant cash burn [3][9] Group 2 - Historical context shows that D-Wave's stock fell 97% from $12 to $0.40 during the 2022 market crash, highlighting the volatility of speculative stocks [5][6] - The current downside risk for QBTS stock is suggested to be below $1, reflecting the company's ongoing cash burn and reliance on future expectations rather than solid fundamentals [6][8] - Key risks include a gap between commercial reality and research applications, intensifying competition from tech giants, and potential dilution of existing shareholders due to cash burn [9]