Quantum puting (US:QUBT) Fortune·2026-02-17 13:37Core Viewpoint - The quantum computing sector is facing scrutiny from activist investors, with all four major publicly-traded companies being targeted for short-selling due to their high market valuations relative to modest revenues [1] Company Overview - D-Wave Quantum, one of the key players in the quantum computing industry, has seen its stock price triple since being targeted by short-seller Kerrisdale Capital, which questioned the efficacy of its technology [2][3] - D-Wave reported a revenue increase to $22 million for the most recent nine-month period, up from $6.5 million the previous year, despite a market cap of $7.4 billion [6] - The company has over 100 paying customers, including notable names like Ford and BASF, and recently secured a $10 million licensing deal with a Fortune 100 company [15][16] Market Dynamics - The total addressable market for quantum computing is estimated to be between $200 billion and $1 trillion, leading to speculative investments in the sector [8] - D-Wave's business model is distinct, with less than 10% of its revenue coming from government contracts, contrasting with many competitors that rely heavily on government funding [17] Technological Challenges - Quantum computing technology is complex, with qubits needing to be error-corrected, which presents significant engineering challenges [9][10] - D-Wave's recent acquisition of Quantum Circuits for $550 million aims to enhance its technology by improving the efficiency of qubit error correction [12][13] - The company acknowledges the difficulties in advancing quantum technology and the potential for delays in future product developments [11] Strategic Moves - D-Wave is focusing on commercializing its quantum annealing method, which optimizes solutions by identifying the lowest energy state [15] - The acquisition of Quantum Circuits is expected to revolutionize D-Wave's capabilities by reducing the number of physical qubits needed for error correction [14]