D-Wave Quantum Signals Cautious Optimism Amid Technical Volatility and Strong Revenue Growth
Summary
On June 24, 2025, D-Wave Quantum Inc. (QBTS) closed at $14.97, reflecting cautious momentum amid significant revenue growth and positive analyst sentiment, while indicating short-term bullish potential despite ongoing profitability challenges.
Technical Analysis
D-Wave Quantum Inc. (QBTS) closed at $14.97 on June 24, 2025, inching up 0.20% from the prior session. The intraday range of $14.70 to $15.36 demonstrates short-term volatility within a defined support of $14.94 and resistance at $15.36. The 14-day RSI at 35 indicates the stock is approaching oversold conditions but not yet firmly in that territory, suggesting cautious momentum. The 50-day moving average sits at $12.34, well below the current price, while the 200-day moving average at $6.42 confirms a strong uptrend on a longer timeframe. The MACD reading of 1.09 supports continued bullish momentum, albeit possibly moderate near-term gains. The average volume of 65.47 million versus today’s 19.06 million shows below-average trading activity, which may imply consolidation or reduced volatility ahead. The ATR at 9.39 suggests substantial price range volatility over recent sessions, indicative of wider swings common in emerging tech stocks.
Technically, the stock is trading just below its upper resistance, and a slight breakout above $15.36 could trigger a short-term rally. However, a failure to hold above the $14.94 support may signal a pullback to mid-teens or the 50-day moving average.
Fundamental Analysis
QBTS has a market capitalization of approximately $4.51 billion. Earnings remain negative with a trailing twelve months (TTM) EPS of -$0.66 and a negative P/E ratio of -22.12, indicating the company is not currently profitable. The discounted cash flow (DCF) calculation yields a negative intrinsic value of approximately -$0.31 per share, reflecting ongoing cash burn and early-stage commercialization challenges.
Recent fundamental developments present strong catalysts: Q1 FY25 revenue surged 509% year-over-year to $15 million, largely driven by a $12.6 million system sale to Julich, validating revenue scaling potential. The launch of Advantage2 with 4,400+ qubits and advanced connectivity upgrades the company’s technological edge in practical quantum computations. Moreover, expanding international partnerships, notably in South Korea and Germany, diversify the potential customer base and address prior criticisms about limited market scope. This represents concrete progress toward broader commercial adoption.
Analyst consensus is unanimously bullish, with all eight coverage analysts rating QBTS as a “Buy” and target prices centering at $20. Such valuation implies upside of roughly 34% from current levels, factoring in the rapid growth runway and technological leadership. The next earnings report on August 14, 2025, will be a key near-term event to validate scaling prospects.
Prediction for Next Trading Day & Upcoming Week
For June 25, 2025, QBTS is likely to trade within a narrow range between $14.80 and $15.40, potentially testing the $15.36 resistance level. Given the firm’s recent momentum and positive news drivers, a mild bullish bias exists, favoring modest gains if broader market conditions remain stable.
Over the next week, assuming no adverse macro shocks, QBTS may gradually test levels toward $16-$17, supported by robust tech demand and strategic partnerships. Volatility remains elevated, so intermittent pullbacks near support should be anticipated.
Intrinsic Value & Long-Term Investment Potential
The present negative intrinsic value from a DCF perspective highlights ongoing cash flow deficits and early-stage growth risks. However, significant revenue increases and technological milestones suggest improving fundamentals ahead. Quantum computing represents a frontier technology with transformative potential, positioning D-Wave as a possible category leader.
If the company continues to secure large-scale system sales and expands its global footprint while edging toward profitability, the intrinsic value can materially improve. The steep learning curve and capital intensity remain considerations, limiting the appeal for risk-averse investors but enhancing long-term upside for those able to weather volatility.
Overall Evaluation
QBTS fits the profile of a growth-oriented stock with promising technological advantages and accelerating revenue growth but with elevated near-term risks and current lack of profitability. Technicals support a cautiously bullish stance over the short term, while fundamental catalysts offer a constructive outlook for the medium to long horizon.
Categorizing QBTS, it aligns most closely with a 'Buy' candidate given the unanimous analyst buy consensus, compelling technology developments, and strong revenue momentum against a backdrop of manageable technical support levels. The main caveats are elevated volatility and fundamental execution risks inherent in quantum computing commercialization.
