D-Wave Quantum (NYSE:QBTS) Stock Price Down 7% After Earnings Miss

D-Wave Quantum Inc. (NYSE:QBTS) shares dropped 7% during mid-day trading 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. Approximately 27,344,717 shares changed hands during 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) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.04). D-Wave Quantum had a negative return on equity of 97.58% and a negative net margin of 1,651.81%.The business had revenue of $2.75 million for the quarter, compared to analyst estimates of $3.74 million. D-Wave Quantum’s revenue was up 21.7% compared to the same quarter last year.

Key D-Wave Quantum News

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 brokerages have recently issued reports on QBTS. Wedbush began coverage on D-Wave Quantum in a research note on Wednesday, December 17th. They issued an “outperform” rating and a $35.00 price objective on the stock. Canaccord Genuity Group set a $43.00 price target on D-Wave Quantum in a report on Thursday, January 29th. Mizuho decreased their price objective on D-Wave Quantum from $46.00 to $40.00 and set an “outperform” rating for the company in a research note on Friday. Roth Mkm lowered their price objective on D-Wave Quantum from $40.00 to $30.00 and set a “buy” rating for the company in a research report on Friday. Finally, Needham & Company LLC reduced their target price on shares of D-Wave Quantum from $48.00 to $40.00 and set a “buy” rating on the stock in a report on Thursday. Fourteen investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, D-Wave Quantum has a consensus rating of “Moderate Buy” and an average price target of $36.50.

Insiders Place Their Bets

In other news, CEO Alan E. Baratz sold 793,712 shares of the firm’s stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $30.13, for a total transaction of $23,914,542.56. Following the sale, the chief executive officer owned 2,633,163 shares of the company’s stock, valued at approximately $79,337,201.19. This trade represents a 23.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Kirstjen Nielsen sold 7,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $22.62, for a total value of $158,340.00. Following the completion of the transaction, the director directly owned 112,673 shares of the company’s stock, valued at $2,548,663.26. This trade represents a 5.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 1,074,466 shares of company stock worth $31,558,806. 3.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On D-Wave Quantum

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Root Financial Partners LLC grew its position 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 worth $26,000 after acquiring an additional 776 shares during the last quarter. Kemnay Advisory Services Inc. acquired a new stake in D-Wave Quantum during the 4th quarter worth $28,000. Atlantic Union Bankshares Corp purchased a new position in D-Wave Quantum during the 2nd quarter worth $29,000. EverSource Wealth Advisors LLC increased its stake in D-Wave Quantum by 267.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 1,151 shares of the company’s stock valued at $30,000 after purchasing an additional 838 shares during the period. Finally, Ancora Advisors LLC acquired a new position in D-Wave Quantum in the third quarter valued at $30,000. Hedge funds and other institutional investors own 42.47% of the company’s stock.

D-Wave Quantum Stock Down 7.0%

The firm has a market capitalization of $6.93 billion, a PE ratio of -13.88 and a beta of 1.56. The business’s fifty day moving average price is $24.40 and its 200 day moving average price is $24.89. The company has a quick ratio of 54.49, a current ratio of 54.68 and a debt-to-equity ratio of 0.05.

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.