D-Wave Quantum (QBTS) Stock Falls 6.2% Amid Market Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Fool
- Stock Decline: D-Wave Quantum's share price fell by 6.2% during trading, with an intraday drop of up to 10%, reflecting concerns over its growth-dependent valuation amid broader market declines.
- Market Impact: The stock's decline coincided with a 2.1% drop in the S&P 500 and a 2.4% decline in the Nasdaq Composite, indicating market sensitivity to geopolitical and economic uncertainties surrounding U.S. attempts to acquire Greenland.
- Contract News Boost: Despite the stock's downturn, D-Wave's valuation pullback appears relatively modest due to news of competitor Rigetti Computing securing an $8.4 million contract, highlighting potential in the quantum computing sector.
- Investment Risk Warning: With a market capitalization of approximately $9.5 billion and a staggering price-to-sales ratio of 238 times expected sales, investing in D-Wave Quantum stock poses significant risks, making it suitable only for investors with a high-risk tolerance given the current geopolitical and macroeconomic uncertainties.
Analyst Views on QBTS
Wall Street analysts forecast QBTS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QBTS is 40.67 USD with a low forecast of 35.00 USD and a high forecast of 48.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 25.630
Low
35.00
Averages
40.67
High
48.00
Current: 25.630
Low
35.00
Averages
40.67
High
48.00
About QBTS
D-Wave Quantum Inc. is a quantum computing company, which is engaged in the development and delivery of quantum computing systems, software, and services. The Company builds and delivers systems, cloud services, application development tools, and professional services to support the end-to-end quantum computing journey for enterprises and developers. The Company's products include Cloud Platform, Systems, Professional Services, and others. Under its Cloud Platform, the Leap quantum cloud service delivers immediate, real-time access to its quantum computers and hybrid solvers services. Under its Systems, the Advantage quantum system is a quantum computer designed for business. It also offers quantum applications to a range of customers, including resource scheduling, factory scheduling, industrial construction design, drug discovery, and others. It offers solutions across workforce scheduling, production scheduling, vehicle routing, resource optimization, and cargo loading.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
