D-Wave Quantum ( (QBTS) ) has fallen by -15.31%. Read on to learn why.
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High conviction QBTS bulls now have this Tradr ETFD-Wave Quantum shares slid 15.31% over the past week, extending a pullback that began after the company’s latest Q1 earnings report highlighted a sharp near-term revenue decline. Revenue dropped 81% year over year to $2.9 million as D-Wave lapped a one-off $12.6 million system sale, while operating expenses and losses ballooned as the company accelerated spending on sales, marketing, and R&D. The uneven timing of large system deals, combined with the long and uncertain roadmap for its gate-model quantum hardware, has left investors wary of the company’s high-risk, high-cash-burn profile despite record bookings.
Yet Wall Street remains notably bullish on D-Wave Quantum, with a Strong Buy consensus and a cluster of top-tier analysts reiterating optimistic calls even as some trim price targets. Mizuho, Roth MKM, TD Cowen, Cantor Fitzgerald, Jefferies, and others all maintained Buy ratings, citing a strengthened system sales pipeline, growing demand for quantum-computing-as-a-service, and expanding use cases in areas like blockchain and quantum AI. The average analyst target of roughly the mid-$30s still implies substantial upside from current levels, suggesting many see the recent share price drop as more about timing and risk sentiment than a change in the long-term story.
Underlying that optimism is a surge in forward-looking indicators: Q1 bookings jumped nearly 2,000% year over year to $33.4 million, remaining performance obligations climbed to $42.4 million, and D-Wave now expects to sell two to three systems annually, up from its prior view of one. The balance sheet has been fortified to support an aggressive technology roadmap, including a push into gate-model quantum computing via the Quantum Circuits acquisition and plans for progressively larger qubit systems into the next decade. For investors, the 15.31% drop in D-Wave Quantum’s stock reflects short-term discomfort with lumpy revenue and mounting losses, set against a long-term bet that today’s swelling backlog and early commercial traction can eventually translate into durable, profitable growth.