Warning: This Skyrocketing Stock Has a Hidden Risk
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D-Wave shareholders are betting on a company that has very little sales and that operates in an unproven market.It's hard to ignore the long list of quantum computing stocks that have been on a tear over the past few years. One company that's benefited from all of the quantum computing hype -- because a lot of it is hype -- is D-Wave Quantum (QBTS 14.45%). D-Wave's returns of 1,600% over the past three years are hard to ignore. But I think the recent gains are masking a significant risk for investors. Here's why. Image source: Getty Images. Significant quantum computing sales are years away When a company's share price is rocketing so high and so fast, some investors don't want to look at the hard truths about the company or the market it's competing in. In this case, the risk many people are ignoring is the fact that D-Wave generates hardly any revenue, and it could be years before quantum computing companies see any meaningful sales. D-Wave recently reported its third-quarter results, and the company had just $3.7 million in sales. That's obviously a very small amount, but it looks even worse when we put it into the context of D-Wave's net loss of $140 million under generally accepted accounting principles (GAAP). This means that the gap between D-Wave's revenue and losses is very significant, and it could be years before it comes close to closing it. While there are plenty of optimistic investors who believe that quantum computing sales will catch up with spending soon, I'm not so sure. Even big tech players like Alphabet -- which has developed its own quantum computing processor and made breakthroughs in quantum algorithms -- believe that significant commercial sales are still five to 10 years away. And management at Rigetti Computing has said that the company won't have commercial sales for three to five years. ExpandNYSE: QBTSD-Wave QuantumToday's Change(-14.45%) $-2.90Current Price$17.20Key Data PointsMarket Cap$6.4BDay's Range$16.91 - $19.6152wk Range$4.45 - $46.75Volume1.2MAvg Vol36MGross Margin82.82% Making matters worse for D-Wave -- and its shareholders -- is the fact that quantum computing requires significant investments in technology and research that don't come cheap. The result of this pushed D-Wave's operating expenses up 40% in the third quarter to $30.4 million. While the company does have $836 million in cash reserves to continue funding research and keep the lights on, the ramp-up in spending means that this pile of cash may not be as large as it seems right now. D-Wave's expensive stock doesn't help, either D-Wave's costs are rising quickly, it has significant losses, it has minimal sales, and the quantum computing market likely still has several more years to go before significant commercial sales materialize. All this should be enough for investors to realize that D-Wave's stock is very risky. But if you need a little more convincing, consider that its massive share price returns mean that its stock now has a price-to-sales (P/S) ratio of 280 -- compared to the tech sector's average P/S ratio of just 9. That's risky indeed.Read NextFeb 5, 2026 •By Robert IzquierdoIs D-Wave Quantum Stock a Buy Now?Feb 4, 2026 •By Rick OrfordShould You Buy D-Wave Stock Before Its Next Breakout?Feb 4, 2026 •By Leo Sun2 Quantum Computing Stocks to Buy Hand Over Fist in FebruaryFeb 4, 2026 •By John BromelsIs D-Wave Quantum (QBTS) Stock a Buy Now?Feb 2, 2026 •By Chris NeigerDown 38%, Should You Buy the Dip on D-Wave Quantum?Feb 1, 2026 •By Will EbiefungWhere Will D-Wave Quantum Stock Be in 5 Years?About the AuthorChris Neiger has been a contributing Motley Fool technology and automotive analyst since 2012.
Before The Motley Fool, Chris was an automotive journalist for the BBC. He holds a master’s degree in journalism from Regent University and a bachelor’s degree from the University of Delaware.TMFNewsieStocks MentionedD-Wave QuantumNYSE: QBTS$17.20 (0.14%) $2.90*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.