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QBTS Stock Slides Ahead of Q3 Earnings: Is It Time to Sell or Hold?
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Key Takeaways
D-Wave Quantum fell 30.5% in 30 days, underperforming peers and the broader technology market.
First-half bookings surged 1,120% to $35.5 million, but revenue conversion remains a key concern.
D-Wave's 58.68X price-to-sales ratio and widening losses warrant caution despite technological progress.
D-Wave Quantum (QBTS - Free Report) faces rising pressure heading into November, raising questions about whether the stock’s persistent weakness reflects deteriorating investor sentiment, valuation concerns or a disconnect between its technological progress and near-term commercial prospects.
As the chart shows below, QBTS fell 30.5% over the 30-day period beginning Sept. 28, 2026, underperforming Rigetti Computing (RGTI - Free Report) , down 27.8%, and Quantum Computing (QUBT - Free Report) , down 23.5%. The computer and technology market, meanwhile, declined just 5.9%. QBTS has also lost nearly 38% over the past six months.
One-Month Price Performance
Image Source: Zacks Investment Research
Recent Developments Offer Hope, but Financial Performance Remains Mixed
QBTS’ upcoming third-quarter 2026 results should provide more insight. However, recent announcements show continued progress. D-Wave delivered Italy’s first annealing quantum computer in October. In the same month, it extended its quantum manufacturing collaboration with SkyWater Technology and launched a gate-model simulator beta program. It also finalized an agreement providing access to up to $100 million in U.S. CHIPS and Science Act funding in September.
The financial picture remains mixed. D-Wave reported second-quarter revenues of $3.1 million, essentially flat year over year, while adjusted EBITDA losses widened 85% to $37.1 million. First-half bookings surged 1,120% to $35.5 million, but investors need evidence of conversion into revenues.
Broader market conditions add another layer of uncertainty. Reuters reported on Oct. 23 that investors were questioning the sustainability of AI-related spending amid technology-stock weakness and an impending Federal Reserve decision.
Against this backdrop, QBTS’ November earnings report could prove pivotal in assessing whether commercial progress can justify investor confidence and reverse its deteriorating share-price trend.
QBTS Trades Below Key Moving Averages as Bearish Momentum Persists
QBTS’ technical indicators reinforce its recent weakness. As of October 23, 2026, the stock traded well below its 50-day and 200-day SMAs. Trading below both averages signals sustained selling pressure, while the 50-day SMA’s position below the 200-day SMA indicates the deteriorating price trend. With previous rebounds failing to sustain momentum, now it's time to watch whether upcoming third-quarter results can restore confidence or whether valuation and profitability concerns will continue to weigh on the stock.
QBTS 50-to-200 Day SMA
Image Source: Zacks Investment Research
QBTS Valuation Remains Lofty Despite a Discount to Rigetti
D-Wave Quantum’s valuation remains elevated, with its trailing 12-month price-to-sales (P/S) at 58.68X versus 5.47X for the broader market. While QBTS trades at a discount to Rigetti Computing’s 61.26X, it remains considerably more expensive than Quantum Computing’s 29.58X. This premium suggests investors are pricing in substantial future growth, leaving the stock vulnerable if commercial progress falls short of expectations.
Image Source: Zacks Investment Research
Why Holding QBTS May Still Make Sense Despite Near-Term Headwinds
Despite its steep decline, selling QBTS solely on recent weakness may be premature for investors with a high-risk tolerance and a long-term investment horizon. D-Wave’s growing bookings, progress in gate-model quantum computing and access to potential CHIPS Act funding offer reasons to monitor its longer-term growth prospects. However, its elevated valuation and widening losses warrant caution. This Zacks Rank #3 (Hold) stock supports a neutral stance rather than an aggressive buy or sell call, suggesting investors should weigh the company’s commercial progress against execution and valuation risks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
QBTS Stock Slides Ahead of Q3 Earnings: Is It Time to Sell or Hold?
Key Takeaways
D-Wave Quantum (QBTS - Free Report) faces rising pressure heading into November, raising questions about whether the stock’s persistent weakness reflects deteriorating investor sentiment, valuation concerns or a disconnect between its technological progress and near-term commercial prospects.
As the chart shows below, QBTS fell 30.5% over the 30-day period beginning Sept. 28, 2026, underperforming Rigetti Computing (RGTI - Free Report) , down 27.8%, and Quantum Computing (QUBT - Free Report) , down 23.5%. The computer and technology market, meanwhile, declined just 5.9%. QBTS has also lost nearly 38% over the past six months.
One-Month Price Performance
Image Source: Zacks Investment Research
Recent Developments Offer Hope, but Financial Performance Remains Mixed
QBTS’ upcoming third-quarter 2026 results should provide more insight. However, recent announcements show continued progress. D-Wave delivered Italy’s first annealing quantum computer in October. In the same month, it extended its quantum manufacturing collaboration with SkyWater Technology and launched a gate-model simulator beta program. It also finalized an agreement providing access to up to $100 million in U.S. CHIPS and Science Act funding in September.
The financial picture remains mixed. D-Wave reported second-quarter revenues of $3.1 million, essentially flat year over year, while adjusted EBITDA losses widened 85% to $37.1 million. First-half bookings surged 1,120% to $35.5 million, but investors need evidence of conversion into revenues.
Broader market conditions add another layer of uncertainty. Reuters reported on Oct. 23 that investors were questioning the sustainability of AI-related spending amid technology-stock weakness and an impending Federal Reserve decision.
Against this backdrop, QBTS’ November earnings report could prove pivotal in assessing whether commercial progress can justify investor confidence and reverse its deteriorating share-price trend.
QBTS Trades Below Key Moving Averages as Bearish Momentum Persists
QBTS’ technical indicators reinforce its recent weakness. As of October 23, 2026, the stock traded well below its 50-day and 200-day SMAs. Trading below both averages signals sustained selling pressure, while the 50-day SMA’s position below the 200-day SMA indicates the deteriorating price trend. With previous rebounds failing to sustain momentum, now it's time to watch whether upcoming third-quarter results can restore confidence or whether valuation and profitability concerns will continue to weigh on the stock.
QBTS 50-to-200 Day SMA
Image Source: Zacks Investment Research
QBTS Valuation Remains Lofty Despite a Discount to Rigetti
D-Wave Quantum’s valuation remains elevated, with its trailing 12-month price-to-sales (P/S) at 58.68X versus 5.47X for the broader market. While QBTS trades at a discount to Rigetti Computing’s 61.26X, it remains considerably more expensive than Quantum Computing’s 29.58X. This premium suggests investors are pricing in substantial future growth, leaving the stock vulnerable if commercial progress falls short of expectations.
Image Source: Zacks Investment Research
Why Holding QBTS May Still Make Sense Despite Near-Term Headwinds
Despite its steep decline, selling QBTS solely on recent weakness may be premature for investors with a high-risk tolerance and a long-term investment horizon. D-Wave’s growing bookings, progress in gate-model quantum computing and access to potential CHIPS Act funding offer reasons to monitor its longer-term growth prospects. However, its elevated valuation and widening losses warrant caution. This Zacks Rank #3 (Hold) stock supports a neutral stance rather than an aggressive buy or sell call, suggesting investors should weigh the company’s commercial progress against execution and valuation risks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.