D-Wave Quantum (NYSE:QBTS) Trading Down 7% Following Weak Earnings

Shares of D-Wave Quantum Inc. (NYSE:QBTS) fell 7% on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $17.65 and last traded at $18.7330. 27,344,717 shares changed hands during mid-day trading, a decline of 18% from the average session volume of 33,210,672 shares. The stock had previously closed at $20.14.

The company reported ($0.09) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.04). The firm had revenue of $2.75 million during the quarter, compared to analysts’ expectations of $3.74 million. D-Wave Quantum had a negative net margin of 1,444.10% and a negative return on equity of 67.75%. The company’s revenue for the quarter was up 21.7% on a year-over-year basis.

Trending Headlines about D-Wave Quantum

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

• Positive Sentiment: Material bookings and enterprise traction — Management reported Q4 bookings of $13.4M (big sequential jump) and said January bookings topped $30M; the company also disclosed large Advantage2 system sales and institutional contracts that underpin future revenue upside. MarketBeat: Despite a Double Miss
• Positive Sentiment: Strong cash runway following the Quantum Circuits acquisition — D-Wave finished the period with roughly $885M in cash & marketable securities even after the acquisition and cash outlays, which reduces near-term financing risk while the company invests in R&D and go-to-market. MarketBeat: Cash Position
• Neutral Sentiment: Full earnings materials and call transcripts are available for investors who want details on bookings composition, margin outlook and integration plans; the call provides color but no immediate catalytic guidance. Earnings Call Transcript
• Neutral Sentiment: Analysts remain largely constructive but are resetting targets — several firms kept buy/outperform ratings while trimming targets, leaving consensus upside but lowering near-term sentiment. Benzinga: Analyst Coverage
• Negative Sentiment: Double miss on the quarter — reported EPS missed estimates (wider loss than expected) and revenue of $2.75M came in below consensus, highlighting that current monetization remains small and lumpy. Zacks: Q4 Earnings Miss
• Negative Sentiment: Post-earnings price-target cuts and investor rotation pressured the rally — several firms trimmed targets (examples: Needham, Mizuho, Roth) and media noted an initial pop that faded as analysts lowered targets and investors weighed long-term promise versus weak near-term results. The Motley Fool: Reaction

Analyst Ratings Changes

A number of equities research analysts recently commented on QBTS shares. Wall Street Zen downgraded shares of D-Wave Quantum from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. Canaccord Genuity Group set a $43.00 target price on D-Wave Quantum in a research note on Thursday, January 29th. TD Cowen assumed coverage on D-Wave Quantum in a research note on Thursday, February 12th. They issued a “buy” rating on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of D-Wave Quantum in a report on Monday, December 29th. Finally, Zacks Research raised D-Wave Quantum from a “strong sell” rating to a “hold” rating in a report on Thursday, November 6th. Fourteen analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $36.50.

Insiders Place Their Bets

In other D-Wave Quantum news, CFO John M. Markovich sold 9,179 shares of the company’s stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $28.06, for a total value of $257,562.74. Following the sale, the chief financial officer owned 1,462,133 shares of the company’s stock, valued at $41,027,451.98. This represents a 0.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Alan E. Baratz sold 35,013 shares of the stock in a transaction that occurred on Wednesday, January 14th. The shares were sold at an average price of $28.06, for a total transaction of $982,464.78. Following the completion of the sale, the chief executive officer owned 2,598,150 shares in the company, valued at $72,904,089. This represents a 1.33% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 1,074,466 shares of company stock worth $31,558,806. 3.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On D-Wave Quantum

A number of hedge funds and other institutional investors have recently modified their holdings of QBTS. Root Financial Partners LLC lifted its stake in shares of D-Wave Quantum by 388.0% during the fourth quarter. Root Financial Partners LLC now owns 976 shares of the company’s stock valued at $26,000 after buying an additional 776 shares during the period. Kemnay Advisory Services Inc. acquired a new position in D-Wave Quantum in the 4th quarter valued at $28,000. Atlantic Union Bankshares Corp purchased a new position in shares of D-Wave Quantum during the 2nd quarter worth $29,000. EverSource Wealth Advisors LLC boosted its holdings in shares of D-Wave Quantum by 267.7% during the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock worth $30,000 after purchasing an additional 838 shares during the last quarter. Finally, Ancora Advisors LLC acquired a new stake in shares of D-Wave Quantum during the third quarter worth $30,000. 42.47% of the stock is currently owned by hedge funds and other institutional investors.

D-Wave Quantum Stock Performance

The firm has a market cap of $6.93 billion, a PE ratio of -17.03 and a beta of 1.56. The stock has a 50-day moving average price of $24.24 and a 200 day moving average price of $24.94. The company has a debt-to-equity ratio of 0.05, a current ratio of 54.68 and a quick ratio of 54.49.

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.