D-Wave Quantum (QBTS) is getting a lot of bullish attention. The stock has a Strong Buy analyst consensus, with 7 out of 7 analysts rating it a Buy. The average 12-month price target is $17.33, suggesting modest upside from the current price of around $16.79.
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However, there’s one voice of caution: Spark, TipRanks’ AI-powered analyst, rates the stock as a Hold with a score of 66. So, what’s behind the gap?
Spark vs. Wall Street Analysts
The main difference comes down to what’s being prioritized. Human analysts are placing more weight on momentum, technical progress, and business expansion. Spark is leaning on hard financial metrics and risk factors.
On the bullish side, analysts point to several standout achievements. Revenue grew 509% year-over-year in Q1 to $15 million, thanks to strong system sales. Gross margin reached 92.5%, up from 67.3% a year ago. The company ended the quarter with $304 million in cash, which jumped to $815 million after a $400 million equity offering. Analysts also highlight a major win in demonstrating quantum supremacy using its 1,200-qubit Advantage2 system, as well as new partnerships with Ford Otosan and Yonsei University in South Korea.
These are all signals of progress and growing commercial traction. That’s why firms like Cantor Fitzgerald and Roth MKM are assigning price targets of $18 to $20 and reiterating Buy ratings.
Spark, however, takes a more cautious view. The model factors in high cash burn, negative free cash flow of $52 million, and a net loss of $132 million over the trailing twelve months. EBIT margin stands at -332%. While Spark does register the earnings call sentiment and technical indicators as positive, it weighs these gains against poor profitability metrics and volatile cash flows.
The Risks Factor
Another red flag for Spark is insider activity. Director Rohit Ghai sold over $730,000 worth of shares last month. Insider sentiment overall has turned negative in recent quarters. Spark also incorporates the company’s disclosure of 61 risk factors, including restated financials and weak U.S. government interest in its quantum annealing approach.
The gap between Spark and the analyst community comes down to timing and risk tolerance. Analysts are pricing in future growth and milestone progress. Spark prioritizes the company’s current financial profile and governance risks.
Both points of view have merit. QBTS is showing signs of technical leadership in quantum computing, but it remains early-stage and high-risk. Whether the recent surge continues may depend on its ability to turn technical wins into consistent revenue and operating leverage.
Is D-Wave a Good Stock to Buy?
As is the theme of this article, the Street’s analysts see more room for growth for D-Wave and consider it a Strong Buy. The average stock price target for QBTS is $17.33, implying a 3.22% upside.
