D-Wave Quantum (NYSE:QBTS) Trading Down 9.3% on Disappointing Earnings

D-Wave Quantum Inc. (NYSE:QBTS)’s share price dropped 9.3% on Thursday following a dissappointing earnings announcement. The stock traded as low as $18.33 and last traded at $19.41. Approximately 23,542,683 shares traded hands during mid-day trading, a decline of 21% from the average daily volume of 29,927,717 shares. The stock had previously closed at $21.39.

The company reported ($0.13) EPS for the quarter, missing analysts’ consensus estimates of ($0.08) by ($0.05). The firm had revenue of $3.08 million for the quarter, compared to analyst estimates of $4.03 million. D-Wave Quantum had a negative return on equity of 44.06% and a negative net margin of 2,957.23%.

D-Wave Quantum News Roundup

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: Customer bookings surged approximately 1,120% year over year, while D-Wave reported a backlog of about $40.7 million. The figures suggest improving commercial demand, although the revenue has not yet been recognized. Why D-Wave Quantum Stock Is Sliding After Earnings Reveal a 1,120% Surge in Bookings
• Positive Sentiment: D-Wave recently announced a Nature-published hardware breakthrough involving a high-fidelity, two-qubit entangling gate. The research could strengthen its path toward fault-tolerant, gate-model quantum computing and support its longer-term technology narrative. D-Wave Demonstrates Major Hardware Breakthrough
• Neutral Sentiment: The company operates across both annealing and gate-model quantum systems, software and services, giving investors exposure to multiple potential quantum-computing markets. However, the commercial impact of the newer technology remains uncertain. D-Wave’s Quantum Breakthrough Adds a Tailwind
• Negative Sentiment: Second-quarter revenue was $3.08 million, below analyst estimates of roughly $4.03 million to $4.08 million. The company reported a loss of $0.13 per share, wider than the expected $0.08 loss, though it improved from a $0.55 loss a year earlier. D-Wave Q2 Results
• Negative Sentiment: D-Wave continues to operate with substantial losses, including a reported negative net margin of roughly 2,957%. Investors appear concerned that bookings and backlog are not translating into current revenue quickly enough to justify the stock’s elevated valuation.

Analyst Ratings Changes

Several equities research analysts recently commented on QBTS shares. Jefferies Financial Group reiterated a “buy” rating on shares of D-Wave Quantum in a report on Tuesday, May 12th. B. Riley Financial increased their price target on shares of D-Wave Quantum from $36.00 to $40.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. Northland Securities began coverage on shares of D-Wave Quantum in a research note on Monday, April 20th. They set a “market perform” rating and a $22.00 target price for the company. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $40.00 target price on shares of D-Wave Quantum in a report on Wednesday, May 13th. Finally, Needham & Company LLC reaffirmed a “buy” rating and issued a $40.00 price objective on shares of D-Wave Quantum in a report on Tuesday, June 2nd. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, D-Wave Quantum presently has a consensus rating of “Moderate Buy” and an average target price of $36.40.

Insider Buying and Selling

In related news, Director Rohit Ghai sold 13,518 shares of D-Wave Quantum stock in a transaction on Monday, June 15th. The stock was sold at an average price of $26.41, for a total value of $357,010.38. Following the transaction, the director directly owned 23,617 shares in the company, valued at $623,724.97. The trade was a 36.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Sophie C. Ames sold 3,070 shares of D-Wave Quantum stock in a transaction dated Monday, July 20th. The stock was sold at an average price of $16.95, for a total value of $52,036.50. Following the completion of the transaction, the vice president directly owned 589,009 shares in the company, valued at $9,983,702.55. This represents a 0.52% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,363,842 shares of company stock worth $35,789,148 in the last ninety days. Insiders own 1.30% of the company’s stock.

Institutional Trading of D-Wave Quantum

Several large investors have recently added to or reduced their stakes in QBTS. Bank of New York Mellon Corp acquired a new position in D-Wave Quantum during the second quarter valued at $54,951,000. Prospect Financial Services LLC acquired a new stake in D-Wave Quantum in the second quarter valued at approximately $329,000. Kelleher Financial Advisors acquired a new stake in shares of D-Wave Quantum in the 2nd quarter valued at $39,000. Handelsbanken Fonder AB lifted its position in shares of D-Wave Quantum by 23.6% in the second quarter. Handelsbanken Fonder AB now owns 133,200 shares of the company’s stock worth $3,195,000 after buying an additional 25,400 shares during the last quarter. Finally, Bay Rivers Group boosted its position in D-Wave Quantum by 62.2% during the second quarter. Bay Rivers Group now owns 17,357 shares of the company’s stock worth $416,000 after purchasing an additional 6,657 shares during the period. 42.47% of the stock is owned by institutional investors and hedge funds.

D-Wave Quantum Trading Down 9.3%

The firm has a market capitalization of $7.18 billion, a P/E ratio of -17.18 and a beta of 2.15. The company’s fifty day moving average is $22.13 and its 200-day moving average is $20.65. The company has a current ratio of 21.41, a quick ratio of 21.31 and a debt-to-equity ratio of 0.03.

About D-Wave Quantum

D-Wave Quantum Inc (NYSE: QBTS) develops and provides quantum computing systems, software and services focused on quantum annealing technology. Headquartered in Burnaby, British Columbia, D-Wave designs specialized processors that leverage quantum mechanics to solve complex optimization and sampling problems. Since its founding in 1999 by physicists including Geordie Rose, the company has pursued the development of commercially viable quantum hardware and accompanying software tools.

The company’s product portfolio centers on its quantum annealers, which are complemented by hybrid solvers that integrate classical and quantum computing resources.