D-Wave Quantum Soars 18.73% Amid High Volume, Future Prospects Depend on Profitability Progress

Technical Analysis

D-Wave Quantum Inc. (NYSE: QBTS) experienced a robust trading session on March 13, 2025, closing at $6.91, a notable increase of 18.73% from the previous day. This rally was supported by high trading volume, reaching 128.82 million shares, significantly above the average of 84.56 million. The stock's RSI of 47 suggests that it is neither overbought nor oversold, indicating a potential stabilization. However, the MACD remains slightly negative at -0.12, revealing a level of bearish sentiment. The immediate resistance level is set at $7.22, slightly above the recent high of $7.12. Support stands firm at $6.37. While the 50-day moving average is $6.24, the 200-day moving average at $2.89 underpins a longer-term upward trend trajectory.

Fundamental Analysis

D-Wave Quantum Inc. reported a Q4 2024 loss per share of $0.37, higher than the anticipated loss of $0.09 and a greater loss compared to $0.10 in the previous year. Despite the earnings miss, revenue exceeded expectations, a result that generated optimism and is attributed to increasing customer acquisition. The company's intrinsic DCF valuation remains negative at -$1.71, reflecting continued negative cash flow. The company's current market cap stands at $1.84 billion. With a PE ratio of -16.85 due to negative earnings, the stock may be perceived as speculative given its lack of profitability to date.

Short-term Outlook

Looking ahead to the next trading day, the positive news surrounding the company's revenue and forecast could sustain the stock's upward momentum, potentially testing the resistance level near $7.22. However, there remains a risk of volatility, particularly if broader market conditions deteriorate due to macroeconomic factors such as tariff threats. Over the upcoming week, the stock could remain buoyant provided investor sentiment maintains its optimism from the recent corporate communication and the impressive revenue results.

Long-term Investment Potential

D-Wave's position in the burgeoning quantum computing sector presents considerable long-term potential, with steady customer base expansion. However, the company's ongoing negative earnings and cash flow impede intrinsic value realization at present. For long-term investors, close attention must be given to subsequent quarters and efforts to curb earnings losses. Earnings announcement slated for May 12, 2025, will offer further insights into the company's progress toward profitability.

Overall Evaluation

Based on the current technical and fundamental indicators, and considering recent corporate developments, D-Wave Quantum Inc. shares appear to be a 'Hold' candidate for existing stakeholders. The short-term rally, while significant, may face headwinds from broader economic factors and the inherent challenges in achieving consistent profitability. Long-term growth investors may view the company's industry position favorably, yet caution remains advisable until more consistent and financially sustainable updates are observed.