D-Wave Quantum Inc. (QBTS) Down 4.9% — Is It Time to Retreat and Regroup?
D-Wave Quantum Inc. (QBTS) extended its recent slide in the latest session, closing at $27.42, down 4.91% from the prior close of $28.83 and losing $1.41 on the day. The stock remains under clear pressure after a volatile stretch, retreating further from its recent peaks and giving up ground that had been gained earlier in the year. Trading volume came in at about 41.8 million shares, slightly below its 90-day average of roughly 48.4 million, suggesting that sellers are maintaining control even without a surge in trading activity. This combination of lower price and only moderate volume points to a market that is steadily marking the shares down rather than capitulating in a single high-volume event.
From a longer-term perspective, QBTS is still sharply below its 52-week high of $46.75 set on Oct. 15, 2025, putting the stock more than $19 per share under that benchmark and highlighting how much ground it has surrendered. That retreat underscores the ongoing headwinds facing the name, especially within a high-growth technology cohort that has also seen bouts of weakness. Sector peers such as CrowdStrike (CRWD), Snowflake (SNOW), and Cloudflare (NET) have each experienced their own periods of price pressure, but QBTS’s distance from its 52-week peak stands out as particularly steep. Overall, the recent action reflects a stock that continues to slide and remains under pressure, with buyers so far unable to reverse the prevailing downtrend.
Why D-Wave Quantum Inc. Price is Moving Lower
Despite recent momentum around its CES 2026 showcase plans and triple-digit revenue growth, D-Wave Quantum Inc. is facing growing skepticism over the sustainability of its valuation and business model, putting pressure on the share price. The stock’s 235% surge over the past year has left it trading at roughly 400x sales on about $24 million in annual revenue, a level many investors view as pricing in years of flawless execution. With the company expected to remain unprofitable until at least 2030 and posting a profit margin of roughly -1,650%, even strong top-line growth and a 71.4% gross margin in the latest quarter are being overshadowed by concerns about long-term cash burn and dilution risk. As the initial enthusiasm from the CES announcement and the Quantum Circuits acquisition fades, more valuation-sensitive investors appear to be taking profits.
Caution is also warranted as the broader software and services space, including names like CrowdStrike, Snowflake, and Cloudflare, has already seen aggressive rerating cycles when growth expectations moderate. D-Wave’s Q3 revenue of $3.7 million, up about 100% year-over-year and 20.6% sequentially, is encouraging, but the absolute scale of the business remains small relative to its $10+ billion equity value. Even a record cash balance and strong bookings trajectory do not fully offset execution risk as the company integrates Quantum Circuits, builds out a dual-platform architecture and targets initial gate-model systems in 2026. Against this backdrop, any hint of slower adoption, competitive pressure or tightening risk appetite can exacerbate downside volatility, contributing to the stock’s recent move lower.
What is the D-Wave Quantum Inc. Rating - Should I Sell?
Weiss Ratings assigns D-Wave Quantum Inc. (QBTS) a D rating. Current recommendation is Sell. In Weiss Ratings’ framework, a D means the company has underperformed relative to stocks with similar risk and remains vulnerable if market conditions deteriorate.
The D rating is driven in part by the Weak Growth Index and Very Weak Efficiency Index. Revenue has been expanding at an extremely rapid pace, with growth near 100%. However, this has not translated into sustainable profitability or efficient operations. The company’s profit margin of roughly -1,652% and a negative forward P/E near -21 indicate that growth is coming at a very high cost, with heavy ongoing losses and no clear line of sight to attractive earnings for equity holders.
On the positive side, QBTS earns an Excellent Solvency Index and an Excellent Total Return Index, suggesting a solid balance sheet and periods of strong historical price performance. But these bright spots have not been enough to offset operational weaknesses and poor risk-adjusted prospects. The Weak Volatility Index further signals that past price swings have been unfavorable for conservative investors, with downside risk outweighing the potential upside.
Within Information Technology, QBTS sits in line with other relatively speculative names, many of which also carry Sell-level ratings. Peers such as CrowdStrike Holdings, Inc. (CRWD, D), Snowflake Inc. (SNOW, D-) and Cloudflare, Inc. (NET, D-) similarly exhibit high growth paired with elevated risk. For QBTS, the D (Sell) rating ultimately reflects that, despite strong top-line momentum, the overall profile remains too fragile for most long-term, risk-conscious investors.
About D-Wave Quantum Inc.
D-Wave Quantum Inc. is an Information Technology company operating in the Software and Services segment, focused specifically on quantum computing platforms rather than conventional enterprise software. Founded in 1999 and based in Palo Alto, California, the company has spent decades developing quantum annealing systems, a niche approach that differs from the gate-based quantum architectures pursued by many larger competitors. Its core offerings center on proprietary hardware and tightly coupled software stacks, limiting customers to D-Wave’s ecosystem for both development and deployment. This specialization narrows interoperability with broader cloud and developer toolchains, creating friction for organizations that prefer standardized, vendor-agnostic environments.
The company’s primary products include its Advantage and Advantage 2 quantum computers, the Ocean suite of open-source developer tools, and the Leap quantum cloud service that provides remote access to its systems and hybrid solvers. D-Wave promotes use cases such as allocation, resource scheduling, factory scheduling, vehicle routing, logistics optimization, industrial design, portfolio optimization, and maintenance, repair and overhaul planning, as well as emerging areas like drug discovery. However, these solutions rely on customers embracing a relatively complex workflow that combines quantum and classical computation through the Leap hybrid solver service and the D-Wave Launch onboarding program. This phased, services-heavy approach adds implementation overhead and lengthens adoption cycles, making it harder for enterprises to integrate D-Wave’s technology into existing information technology infrastructure compared with more conventional, cloud-native optimization and analytics solutions.
Investor Outlook
With D-Wave Quantum Inc. (QBTS) carrying a D (Sell) Weiss Rating, investors may want to exercise caution and closely monitor whether recent price action is supported by improving fundamentals or remains driven largely by speculative interest. Watch for shifts in Information Technology sector sentiment, changes in risk metrics that could impact the rating, and any sustained move above or below recent trading ranges. See full rankings of all D-rated Information Technology stocks inside the Weiss Stock Screener.
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