QBTS Stock Down 12% as D-Wave’s Rally Cools on Sky-High Valuations
After a spectacular run-up through much of 2025, quantum computing shares are pulling back sharply as investors book profits and question...
Quick overview
- Quantum computing stocks, led by D-Wave, are experiencing a sharp pullback after significant gains in 2025 as investors take profits and express concerns over high valuations.
- D-Wave's stock has seen a remarkable rise from $1 to $27.70 in under a year, but recent corrections indicate profit-taking and valuation anxieties among investors.
- Despite the sell-off, D-Wave's technical indicators remain positive, suggesting continued interest from short-term traders amid ongoing growth challenges.
- Looking forward, D-Wave is focusing on international expansion and technological advancements, aiming to solidify its position in the competitive quantum computing market.
After a spectacular run-up through much of 2025, quantum computing shares are pulling back sharply as investors book profits and question lofty valuations.
From Breakneck Gains to Sudden Losses
Quantum computing stocks have been among the year’s hottest trades, but the rally’s momentum appears to be faltering. D-Wave (QBTS), a poster child for the sector’s surge, slipped nearly 6% to $25.22 today, while Rigetti and IonQ also lost ground. Despite the sell-off, QBTS remains up more than 62% for the month, underscoring the scale of its earlier climb.
QBTS Chart Daily – Will We See A Deeper Pullback?
The pullback follows an extraordinary September run, fueled by breakthroughs in quantum technology and renewed U.S. government backing for quantum innovation. In the broader context, D-Wave’s journey has been breathtaking—soaring from just $1 in late 2024 to $27.70 in September, a 2,600% gain in under a year. The recent correction, however, reflects profit-taking and valuation concerns. Analysts now view the $20 level as a potential support zone if the decline deepens.
Valuation Anxiety and Market Sentiment
Markets are increasingly wary that the sector’s rally advanced too far, too fast. Many investors cite excessive valuations and a spike in short interest as warning signs that the risk-to-reward profile has narrowed sharply. While D-Wave’s balance sheet has improved thanks to a recent capital raise, its extreme price multiples leave little margin for error.
Adding fuel to earlier gains was a CyberScoop report suggesting that the Trump administration may broaden its national quantum policy framework—potentially through executive directives aimed at safeguarding against quantum-enabled cyber threats and maintaining U.S. technological leadership.
Technical Picture: Bullish Momentum Remains
Despite the sell-off, D-Wave’s technical backdrop remains constructive. The stock has repeatedly bounced off key moving averages on daily charts, signaling ongoing speculative appetite.
A particularly notable setup came in early September: two bullish doji candlesticks appeared after a weak August and disappointing Q2 earnings, preceding a 75% surge in just two weeks. This pattern illustrates the stock’s high velocity and volatility, which continue to attract short-term traders.
Mixed Fundamentals: Growth Versus Heavy Losses
D-Wave’s recent earnings highlight the sector’s core dilemma—rapid growth paired with deep losses. The company posted $3.1 million in revenue, topping the $2.55 million consensus estimate and reflecting 41% year-over-year growth. However, its EPS of $0.08 missed expectations by $0.03, and profitability remains elusive with a return on equity of –118.87% and a net margin of –1,263.92%.
Analysts forecast a full-year loss of roughly –$0.41 per share, underscoring the steep costs of scaling next-generation computing technologies.
Strategic Expansion and Global Reach
Looking ahead, D-Wave continues to emphasize international growth. The company recently announced its first Qubits Japan 2025 user conference in Tokyo, highlighting 83% growth in Asia-Pacific bookings. In parallel, the unveiling of its 4,400-qubit Advantage2 system underscores D-Wave’s commitment to staying ahead of rivals in the race for quantum supremacy.
Despite eye-watering valuations—trading at over 150× sales—investors remain hopeful that D-Wave’s technological edge and growing partnerships will eventually translate into market dominance.
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