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D-Wave Quantum
QBTS-N
RISKY
Apr 30, 2025
$6.910
Stock price when the opinion was issued
Technology
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SELL
Nvidia CEO, Jensen Huang, said that quantum computing has a long way to go, which crushed quantum computing stocks today. This sector got overheated. These stocks have even more downside ahead. They're losing tons of money and have zero or very little revenue. Frothy and excessive. It's not too late to sell.
Technology
QBTS is one of the more popular quantum computing stocks, and thus its fortunes are, for now, going to be driven by sentiment more than fundamentals. We would consider it very very risky. Short interest is 17% and yesterday a short seller made disparaging comments on it. It has about $100M cash but is losing money, and cash flow was negative $43M in the last 12 months. It is going to need more capital, likely this year. It is expected to keep losing money for some time. There is a big debate on quantum, as to whether it will be commercial in five years, ten years, or never. While interesting, there is not a lot to analyse yet here. With a market cap of $2B, 12-month revenue is only $9M. Frankly, we would consider it far too risky for the type of market backdrop we have right now.
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