D-Wave Quantum dips 10%, moderating previous day's rally
View original at seekingalpha.comD-Wave Quantum dips 10%, moderating previous day's rally [Artificial Intelligence, concept CPU - quantum computing] MF3d/E+ via Getty Images D-Wave Quantum (QBTS [https://seekingalpha.com/symbol/QBTS]) shares fell approximately 10% on Tuesday, pulling back after a 20% surge the previous session…
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QBTS trades at a stretched 171x price-to-sales multiple versus peers, with projected 2026 revenue near $35 million and a fair value estimate of $9.50 per share, implying roughly 40% downside from current levels, citing a delayed technology roadmap and D-Wave's reliance on SkyWare amid IonQ's pending acquisition of that supplier.
60% confidenceD-Wave now offers quantum-as-a-service rather than requiring customers to purchase machines outright, though annealing addresses a specific subset of optimization problems.
60% confidenceTheir original 3-to-5-year investment thesis on D-Wave may need to extend to 7-to-10 years before quantum computing achieves meaningful commercial traction.
60% confidenceQuestioned the substance of the AT&T announcement, noting that no contract value or timeline was disclosed.
60% confidenceThe stock could rise further in the near term, but meaningful revenue generation remains the key missing ingredient.
60% confidenceSold their position after profiting from the AT&T-driven rally, expecting the enthusiasm to fade and characterizing quantum stocks as high-beta plays.
60% confidenceD-Wave's dual-platform approach spanning both annealing and gate-model quantum computing is a competitive differentiator and strategic advantage over single-method peers.
60% confidenceCited the 171x price-to-sales ratio as a reason for caution on capital allocation to QBTS.
60% confidence
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