D-Wave Quantum (QBTS) Shows Technical Strength Amid Fundamental Challenges and Volatility Risks

Technical Analysis

D-Wave Quantum Inc. (QBTS) closed at $16.93 on June 10, 2025, down 5.68% after reaching an intraday high of $18.88. The stock remains well above its 50-day ($10.61) and 200-day ($5.68) moving averages, underscoring a strong uptrend. The relative strength index (RSI) at 51 suggests a neutral momentum, neither overbought nor oversold. The MACD remains positive at 3.86, indicating continuing bullish momentum over the medium term. Support is positioned near $16.56, with resistance around $17.55 and a stop-loss level at roughly $16.13. Given the current volatility and high average true range (ATR) above $10.00, price swings may remain substantial in the near term.

For the next trading day (June 11, 2025), immediate technical support near $16.56 could stabilize the price, potentially resulting in a mild recovery from the recent pullback. Over the upcoming week, the price might consolidate between $16.50 and $18.00, as investors digest the recent sharp rally and seek confirmation for sustained growth.

Fundamental Analysis

D-Wave Quantum’s market capitalization stands at approximately $5.19 billion, reflective of strong investor interest in quantum computing technology. Despite this, the company reports a trailing twelve months (TTM) earnings per share (EPS) of -$0.66 and a negative price-to-earnings (PE) ratio of -25.65, indicative of ongoing losses and a non-profitable business model at this stage. The discounted cash flow (DCF) model yields a negative intrinsic value (-$0.28), which suggests that, based on current cash flow projections, the stock is overvalued relative to its fundamental earnings capacity.

However, recent breakthrough announcements, including a 1281% surge following successful demonstrations of quantum computing supremacy in real-world applications, underscore significant growth potential and enterprise traction. Market consensus remains bullish with 8 analysts rating the stock as a “Buy” and none advocating for “Sell” or “Hold.” The consensus price target is markedly lower, averaging $2.75, which indicates that institutional forecasts anticipate considerable downside or correction from current levels, possibly attributing the current valuation to speculative exuberance.

The next earnings announcement on August 6, 2025, is a material catalyst that can provide clearer insight into the company’s path towards profitability and commercial scalability.

Intrinsic Value and Long-Term Investment Potential

The negative DCF and ongoing losses question the current intrinsic value, suggesting the market has priced in substantial growth and near-term technological milestones that have yet to translate into profitability. Long-term investment appeal hinges on D-Wave Quantum’s ability to commercialize its quantum computing technology at scale and capture market share in a nascent but potentially revolutionary sector. Given the early stage of the quantum computing industry, volatility and uncertainty remain high, but the stock’s upward momentum since demonstrating real-world capability highlights a speculative growth thesis.

Investors with a high tolerance for risk focusing on disruptive technology may find value in the long-term growth narrative, yet fundamental risks persist until earnings improve and reliable cash flows materialize.

Overall Evaluation

QBTS currently exhibits characteristics of a high-growth but speculative technology stock. The strong technical uptrend, positive momentum indicators, and favorable analyst consensus support near-term price appreciation potentials. However, weak fundamental earnings, negative intrinsic valuation, and a significant gap between current price and consensus targets signal caution.

The stock is best categorized as a Hold candidate. While momentum and innovation momentum provide upside catalysts, material downside risk remains, especially if upcoming earnings fail to validate growth expectations or if market sentiment shifts. The positioning suggests monitoring for confirmation of sustained commercial viability before endorsing accumulation or more aggressive long positions.