D-Wave Quantum (QBTS)

Will benefit when Honeywell spins off Quantinium this week.

Consensus is that quantum computing will become commercialized by 2029.

In the space, he owns QUBT plus IONQ, QBTS, and QNC -- about a 4-4.5% position across all those names. Within 3 years, you can be sure that quantum computing is all we're going to be talking about. They're going to be able to do something we couldn't do before -- not that it does things faster, but it has more computational power. The area will change everything.

He'd buy a bit of each of these names.

What moves a stock on any given day is, typically, news. He hasn't looked at this one today. The go-to play in Canada, one of the leaders in the space. Quantum has been a huge story. These guys don't make any $$ yet, so falls into that speculative category -- stock will be driven by news, not fundamentals. 

When does quantum become something real? The answer is eventually. Analysts are just starting to cover it. Price targets fall in the range of $30s-40s.

They are the go-to play in quantum computing. They don't make any money yet. Is speculative. Eventually, quantum becomes real. News and not core fundamentals will drive this stock. Banks are starting to cover these stocks. There could be a little more upside. Probably, it will make money some day.

Is up 74% in the last 3 months, though down 40% from highs. Last week, they reported strong Q3 results though only $3.7 million in revenue last quarter because their technology, quantum computing, is in its infancy. These stocks are in a slump recently.

Anything that's run up 200%, take our your cost basis and let the rest run.

Hardware more than software. Not a lot of revenue, tiny compared to the market cap. Can get hit very hard if the market changes. It's all about whether quantum is going to be the next big thing. That's not the type of stock for his firm -- basically a sentiment call and a call on the future.

His team are not experts on technology. But if they see sales, revenues, contracts, and profit, that's third-party confirmation that a company is doing something right.

Actually profitable. Very difficult to place price targets, as it's so small. He added more at the beginning of this week. For it to be commercially viable and scalable is the better part of 3 years down the road. He'd never have more than a 1.5-2% position.

Not profitable, so don't put more than 2% in. But you know the tsunami's coming, it's not just a dream. Up 32% yesterday. His 12-month price target is around $25, but it's just a number. Announced that revenues shot up 150%. Defense and pharmaceutical contracts. No dividend.

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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In quantum computing, follow this company. Doesn't know of an ETF in this sector; it's too early. Quantum is way too early. Earnings aren't there yet. The hype has made this sector volatile.

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.

Quantum computing now is in a classic hype cycle. Don't take any options. Take some profits. There's a lot of volatility in this space; these companies are not profitable. But in a few years, you will wish you had got in on the ground floor.

Quantum computing now is in a classic hype cycle. Don't take any options. Take some profits. There's a lot of volatility in this space; these companies are not profitable. But in a few years, you will wish you had got in on the ground floor.