D-Wave Quantum (NYSE:QBTS) Shares Down 7% on Disappointing Earnings

D-Wave Quantum Inc. (NYSE:QBTS) shares were down 7% during mid-day trading on Friday following a dissappointing earnings announcement. The stock traded as low as $17.65 and last traded at $18.7330. Approximately 27,344,717 shares traded hands during mid-day trading, a decline of 18% from the average daily volume of 33,210,672 shares. The stock had previously closed at $20.14.

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

Key Headlines Impacting 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

Analysts Set New Price Targets

Several research firms recently issued reports on QBTS. Wall Street Zen cut shares of D-Wave Quantum from a “hold” rating to a “sell” rating in a research note on Saturday, February 7th. Weiss Ratings reiterated a “sell (d-)” rating on shares of D-Wave Quantum in a research report on Monday, December 29th. Canaccord Genuity Group set a $43.00 target price on shares of D-Wave Quantum in a research note on Thursday, January 29th. Jefferies Financial Group initiated coverage on D-Wave Quantum in a research note on Tuesday, December 16th. They issued a “buy” rating and a $45.00 price target for the company. Finally, Cantor Fitzgerald increased their price target on D-Wave Quantum from $20.00 to $40.00 and gave the stock an “overweight” rating in a research report on Friday, November 7th. Fourteen equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $36.50.

Insider Transactions at D-Wave Quantum

In other D-Wave Quantum news, CFO John M. Markovich sold 100,000 shares of the firm’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $30.03, for a total value of $3,003,000.00. Following the transaction, the chief financial officer directly owned 1,471,312 shares of the company’s stock, valued at $44,183,499.36. This trade represents a 6.36% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Rohit Ghai sold 10,000 shares of the business’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $24.28, for a total value of $242,800.00. Following the transaction, the director owned 37,778 shares in the company, valued at approximately $917,249.84. This represents a 20.93% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 1,074,466 shares of company stock valued at $31,558,806. Company insiders own 3.20% of the company’s stock.

Institutional Trading of D-Wave Quantum

Several hedge funds have recently made changes to their positions in QBTS. Baird Financial Group Inc. raised its position in shares of D-Wave Quantum by 12.0% during the 1st quarter. Baird Financial Group Inc. now owns 12,135 shares of the company’s stock valued at $92,000 after buying an additional 1,300 shares during the period. Royal Bank of Canada increased its stake in D-Wave Quantum by 59.8% during the first quarter. Royal Bank of Canada now owns 162,088 shares of the company’s stock worth $1,231,000 after acquiring an additional 60,668 shares during the last quarter. AQR Capital Management LLC raised its position in D-Wave Quantum by 201.0% in the first quarter. AQR Capital Management LLC now owns 200,765 shares of the company’s stock valued at $1,526,000 after purchasing an additional 134,066 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in D-Wave Quantum by 93.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 108,572 shares of the company’s stock valued at $825,000 after purchasing an additional 52,437 shares during the period. Finally, NewEdge Advisors LLC lifted its stake in shares of D-Wave Quantum by 125.7% in the 1st quarter. NewEdge Advisors LLC now owns 43,786 shares of the company’s stock valued at $333,000 after purchasing an additional 24,382 shares during the last quarter. Hedge funds and other institutional investors own 42.47% of the company’s stock.

D-Wave Quantum Trading Down 7.0%

The firm has a market capitalization of $6.93 billion, a PE ratio of -17.03 and a beta of 1.56. The company has a current ratio of 54.68, a quick ratio of 54.49 and a debt-to-equity ratio of 0.05. The business has a fifty day moving average price of $24.24 and a two-hundred day moving average price of $24.90.

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.