D-Wave Quantum Plunges 49% in 3 Months: Time to Sell as Losses Widen? - TradingView
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D-Wave Quantum Plunges 49% in 3 Months: Time to Sell as Losses Widen?3 min readQBTS−3.02%Shares of D-Wave Quantum Inc. QBTS have plunged 48.8% over the past three months, sharply underperforming the broader Internet-Software industry’s 15.2% dip, the technology sector’s 3.3% decline and the S&P 500’s 2.3% fall, reflecting both macro and company-specific pressures.The decline comes amid a broader tech sell-off driven by heightened geopolitical tensions, risk-off sentiment and valuation compression across high-growth, pre-profit companies. Even peers like IonQ Inc. IONQ) (down 39.9%) and Rigetti Computing Inc. RGTI (down 41.7%) have seen steep corrections, reflecting sector-wide skepticism.Despite D-Wave Quantum’s reported 179% revenue growth in 2025, bookings volatility (down 22% over 2024), widening adjusted EBITDA losses and continued heavy cash burn signal a distant path to profitability. Moreover, much of its recent momentum, including large system sales and QCaaS deals, is subject to delayed revenue recognition, limiting near-term financial visibility.Three Months Price ComparisonQBTS Business Challenges in 2026D-Wave entered 2026 with several key challenges despite its strong 2025 top-line performance. While revenue grew to $24.6 million in 2025, it remains uneven across quarters, with a 22% drop in bookings showing reliance on a few big deals. Much of its recent wins, like system sales and long-term contracts, will take time to show up as revenue, limiting near-term visibility. Losses are still high (about $71.8 million EBITDA loss) and spending is expected to increase further due to R&D expansion and the Quantum Circuits acquisition. Lastly, although the company is pushing a dual-platform strategy, its gate-model technology is still early-stage. It may lag larger, better-funded competitors, raising concerns about how quickly it can deliver real commercial results.Industry-Wide HeadwindsAt a macro level, conditions are equally challenging. The quantum computing sector remains in the Noisy Intermediate-Scale Quantum (NISQ) Phase meaning systems are not yet widely practical or commercially scalable, with meaningful adoption likely years away (closer to 2030). This keeps stocks driven more by sentiment than fundamentals.At the same time, competition from giants like IBM and rising global investments are increasing both the pace and cost of innovation. Combined with macro pressures like geopolitical tensions, tight financial conditions and reduced appetite for high-risk tech, 2026 could be a tough year for D-Wave Quantum as it works to prove real commercial traction in a still-maturing industry.What the Trend ShowsThe Zacks Consensus Estimate for QBTS’ 2026 loss of 35 cents per share suggests a 25% decline year over year.Upside Potential RemainsYet D-Wave Quantum shows promising growth prospects, driven by rising commercial adoption and strategic expansion. The company recently secured over $30 million in deals, including a $20 million Advantage2 system sale to Florida Atlantic University and a $10 million enterprise QCaaS agreement. Its Advantage2 system rollout and new features are expanding use cases in optimization and enterprise applications, while collaborations in defense and research highlight growing demand. Additionally, the $550 million acquisition of Quantum Circuits strengthens its dual-platform strategy, accelerating development of gate-model systems alongside its established annealing business.Based on short-term price targets offered by 13 analysts, the average price target for D-Wave represents an increase of 135.1% from the last closing price of $16.49.Why It May Be Time to Sell QBTS NowGiven the sharp 48.8% decline, weakening bookings trend and rising losses, the near-term risk-reward for D-Wave Quantum appears unfavorable despite long-term potential. The company remains far from profitability, with increasing cash burn and limited revenue visibility due to delayed deal recognition. At the same time, macro headwinds, risk-off sentiment and intense competition continue to pressure valuations across quantum stocks. While upside targets look attractive on paper, execution risks remain high in a still-nascent industry. With a Zacks Rank #5 (Strong Sell), this may be an opportune time for investors to book profits and reduce exposure.You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportIonQ, Inc. (IONQ): Free Stock Analysis ReportRigetti Computing, Inc. (RGTI): Free Stock Analysis ReportD-Wave Quantum Inc. (QBTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchZacksRead more from ZacksMore news from Zacks ZacksPhibro Animal Health Stock Up 152.3% in a Year: What's Driving It?ZacksImplied Volatility Surging for First Commonwealth Financial Stock OptionsZacksAeroVironment vs. Kratos Defense: Which Drone Defense Stock Is Better?ZacksETFs in Focus as Anthropic Eyes IPO: A Blockbuster on the Way?ZacksIs the Options Market Predicting a Spike in Teradata Stock?