Stock Price & Analysis

Buy QBTS stock as D-Wave's Qubits 2025 event and Strong Buy analyst consensus suggest growth potential. However, be cautious due to profitability concerns and market volatility.

The price prediction for QBTS stock in 2025 is $12, driven by positive analyst sentiment and the upcoming Qubits 2025 event. Analysts have raised their price targets, with Craig Ellis from B. Riley Securities setting a target of $12. The event is expected to highlight D-Wave's quantum technology advancements, supporting the bullish outlook.

The S1 support level for QBTS Stock is $7.64 ,The R1 resistant level for QBTS Stock is $11.23.

As of the end of day on 2025-03-28, the price of QBTS Stock was $7.52.

The target price for QBTS Stock according to analyst rating is 8.63, with the highest price target at 11.00 and the lowest at 7.00. Analysts have a Strong Buy rating on QBTS Stock overall.

The market cap of QBTS is $2.2B.

Analysis and Insights

Valuation Metrics:

QBTS's valuation metrics indicate potential overvaluation. The stock has a high price-to-sales (PS) ratio of 17.59 and 18.07 for Q2 and Q3 2024, respectively, suggesting a premium relative to its revenue. Additionally, the EV/EBITDA ratio is negative, reflecting significant operating losses.

Financial Performance:

The company reported negative net income for all four quarters of 2024, with a substantial loss of $86.08 million in Q4. While revenue has been inconsistent, the expenses have outpaced revenue, leading to continued losses.

Market Sentiment and Analyst Ratings:

Despite the losses, QBTS has a Strong Buy consensus rating with an average price target of $9.63, implying a 10.44% upside. However, some investors remain cautious, noting that profitability is unlikely in the near term.

Recent Price Action:

The stock has surged over 800% in six months, driven by optimism about quantum computing. However, this rapid appreciation may not fully align with its fundamentals, raising concerns about overvaluation.

Conclusion:

While QBTS shows promise due to its leadership in quantum annealing and upcoming events like Qubits 2025, its current valuation appears stretched given the significant operating losses and high PS ratio. Investors should weigh the long-term potential against the near-term risks of overvaluation.

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 the 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 The Leap and The Advantage. The Leap quantum cloud service delivers immediate, real-time access to its Advantage quantum computer and quantum hybrid solver services. The Advantage quantum system is a quantum computer built for business. It also provides quantum applications to a range of customer including, scheduling, mobility, logistics, drug discovery, portfolio optimization, manufacturing processes, and others. The Company’s systems used by advanced organizations, including Volkswagen, Pattison Food Group, DENSO, Toyota, BBVA, NEC, Interpublic Group, and Lockheed Martin.

Based on current trends and analysis, here is a 3-sentence price prediction for QBTS stock by 2030:

• QBTS stock is predicted to reach $15 by 2030 due to its strong position in quantum annealing and growing demand for quantum AI solutions.
• The stock could potentially double from current levels as D-Wave continues to lead in practical quantum computing applications.
• Analysts expect long-term growth driven by real-world applications in logistics, pharmaceuticals, and cybersecurity.

QBTS has a total of 200 employees.