Is D-Wave Quantum (QBTS) a good stock to buy now?
7/24/2025 07:16pm
**D-Wave Quantum (QBTS) is not a good stock to buy now**. Here's why:
1. **Financial Performance and Challenges**:
- D-Wave Quantum has reported a net loss of $5.42 million and a diluted EPS of -$0.02 for the latest quarter ending on Q1 2025. This indicates the company is currently unprofitable.
- Despite a revenue growth rate of 508.56%, the net income growth rate is only 68.69%, which suggests that the company's expenses are growing at a faster rate than its revenues.
|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|QBTS|QBTS.N|D-Wave Quantum|2024 Q2|2183000|-1.7778E7|-0.1|169|
|QBTS|QBTS.N|D-Wave Quantum|2024 Q3|1870000|-2.2712E7|-0.11|169|
|QBTS|QBTS.N|D-Wave Quantum|2024 Q4|2309000|-8.6077E7||169|
|QBTS|QBTS.N|D-Wave Quantum|2025 Q1|1.5001E7|-5421000|-0.02|169|
|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|QBTS|QBTS.N|D-Wave Quantum|2024 Q2|32.11653747756692|27.885178676039835|52.38095238095237|169|
|QBTS|QBTS.N|D-Wave Quantum|2024 Q3|-41.01577052030299|-27.010148321623735|8.33333333333333|169|
|QBTS|QBTS.N|D-Wave Quantum|2024 Q4|-437.5109279380542|-20.54370268410186||169|
|QBTS|QBTS.N|D-Wave Quantum|2025 Q1|68.68646025878003|508.5598377281947|81.81818181818181|169|
2. **Technical Indicators Show Caution**:
- The stock's technical indicators, such as the MACD, RSI, and KDJ, are at levels that typically suggest an asset is overbought. This could indicate a potential pullback in price.
- The stock is also trading above its 5-day, 10-day, and 20-day moving averages, which could be a sign of a short-term downward trend.
|code|Ticker|Name|Date|Moving Average|market_code|
|---|---|---|---|---|---|
|QBTS|QBTS.N|D-Wave Quantum|20250723|18.8820|169|
|code|Ticker|Name|Date|Boll|RSI|KDJ|MACD|market_code|
|---|---|---|---|---|---|---|---|---|
|QBTS|QBTS.N|D-Wave Quantum|20250723|16.3875|73.3294|84.8137|0.6458|169|
3. **Market Sentiment and Analyst Ratings**:
- While there have been positive price target increases from analysts, the current average one-year price target suggests a potential downside from the current price.
- The stock has seen significant volatility and a large net fund outflow, which could be a sign of investor caution.
|code|Ticker|Name|Date|Net Fund Flow|Net Fund Flow (Block Order)|market_code|
|---|---|---|---|---|---|---|
|QBTS|QBTS.N|D-Wave Quantum|20250106|-1.23742037852E7|-1.21895350353E7|169|
|QBTS|QBTS.N|D-Wave Quantum|20250107|-3463969.8987|-3289612.867|169|
|QBTS|QBTS.N|D-Wave Quantum|20250108|-1.25237923335E7|-1.34755915175E7|169|
|QBTS|QBTS.N|D-Wave Quantum|20250110|-4641765.7272|-4274642.3182|169|
|QBTS|QBTS.N|D-Wave Quantum|20250113|-3946828.1196|-2151038.6623|169|
|QBTS|QBTS.N|D-Wave Quantum|20250114|-4353167.5445|-5970266.1177|169|
|QBTS|QBTS.N|D-Wave Quantum|20250115|-2.37105216008E7|-2.38921581269E7|169|
|QBTS|QBTS.N|D-Wave Quantum|20250116|-2.66110304423E7|-2.65467593325E7|169|
|QBTS|QBTS.N|D-Wave Quantum|20250117|-4375951.7605|-3802773.3554|169|
|QBTS|QBTS.N|D-Wave Quantum|20250121|-2.77244109395E7|-2.85997577996E7|169|
4. **Long-Term Growth Prospects**:
- D-Wave Quantum is in a growing market, with quantum computing expected to have significant applications.
- However, the company has yet to achieve profitability, and its financials show a high operating expense and net loss.
5. **Dividend and Growth Duration**:
- The company does not currently pay dividends, which may be a consideration for income-focused investors.
- There is no historical record of dividend growth, which may indicate that the company has not yet reached a stable dividend-paying stage.
In conclusion, while D-Wave Quantum is in a promising industry, the current financial and technical indicators suggest that it is not a good stock to buy at this moment. Investors should exercise caution and consider the high risk associated with the company's current stock price and market conditions.