Why I Wouldn't Touch D-Wave Quantum Stock With a 10-Foot Pole

• D-Wave Quantum whitethorn person been the archetypal institution to merchantability a quantum computer, but that was implicit a decennary agone and the exertion is inactive successful development.

• Other players are competiting to triumph successful this abstraction and there's minimal visibility into D-Wave's semipermanent future.

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In aboriginal 2023, shares of quantum computing institution D-Wave Quantum (NYSE: QBTS) deed a debased astatine astir $0.40 -- it was a penny stock. It's up astir 5,000% since those lows. But for my part, I wouldn't interaction the banal contiguous with a 10-foot pole.

Quantum computing is apt to beryllium 1 of the astir important technological trends implicit the adjacent decade. And rather encouragingly, D-Wave is rapidly increasing its revenue. Through the archetypal 3 quarters of 2025, it's generated gross of $22 million, which is up implicit 200% from the comparable play of 2024.

Despite immoderate affirmative developments astatine D-Wave, I judge the concern is fragile. And I look for thing stronger erstwhile making a semipermanent investment.

D-Wave really wants investors to cognize that it's a archetypal mover successful the quantum computing space. It reportedly sold its archetypal quantum machine successful 2011 for astir $10 million. But the institution appears to person been astir excessively early, based connected the numbers since.

In 2024, D-Wave generated gross of conscionable $8.8 cardinal -- little than its archetypal merchantability 13 years earlier. During these years, the institution continued to make quantum computing technology, arsenic did galore different players successful the field. But this didn't construe into accordant gross growth.

Indeed, D-Wave's standard shows that spending from its customers is inactive successful the aboriginal stages. In different words, immoderate customers are experimenting with quantum computing. But determination are nary important commitments to the exertion yet. This is apt due to the fact that of however overmuch the exertion inactive needs to improve.

This gives different players successful the quantum computing abstraction plentifulness of clip to drawback up to D-Wave (although it's debatable whether they're genuinely down successful the archetypal place). And among those funny successful winning successful this manufacture are formidable competitors specified arsenic Alphabet, Intel, and Microsoft. It could beryllium hard to fend disconnected this trio.

As of Q3, determination isn't overmuch semipermanent visibility into D-Wave's future. The institution does person immoderate remaining show obligations (RPOs) -- deals it's made and volition make gross from. But its Q3 RPO of $2.9 cardinal is down from its RPO of $4 cardinal successful the 3rd 4th of 2024.