QBTS - Joyride Is Over: Selling D-Wave Quantum Stock Before Bookings Negative Kicks In
2025-05-23 11:18:20 ET
Summary
- D-Wave Quantum Inc.'s stock surged +164% over the past month on Advantage2's launch and $15M in sales for Q1 versus $8.8M for FY24.
- We're calling 'sell' on D-Wave because the revenue growth this quarter is on a one-time sale rather than commercial/enterprise adoption.
- Not to mention, the market is ignoring the big fat red flag from this quarter: declining bookings, down 64% to $1.6M from $4.5M in the year-ago quarter.
- Valuation is stretched at 161x sales versus the group median of 3x.
- D-Wave has done well, but the joyride is almost over as bookings decline; we recommend investors don't ride the QBTS wave down.
D-Wave Quantum Inc. ( QBTS ) is up 167% over the past month, nearing $20 per share versus around $7 per share at the end of April. The run-up isn’t slowing down, with Advantage2 to thank; the latter boosted the stock +30% since Tuesday. Basically, D-Wave introduced Advantage2, the sixth-generation quantum computer; it has 20-way qubit connectivity, +4,400 qubits, and 40,000 couplers for a higher quality solution, high coherence, and energy efficiency, with 12.5 kW used, all of which work to solve problems with up to two million variables and constraints....
Joyride Is Over: Selling D-Wave Quantum Stock Before Bookings Negative Kicks In