QBTS Faces Volatility Amid Bullish Technicals and Fundamental Challenges Ahead of Earnings Report

Technical Analysis

D-Wave Quantum Inc. (QBTS) closed at $15.88 on June 12, 2025, down 3.93%. The stock has experienced notable volatility, trading between $15.78 and $17 intraday. The Relative Strength Index (RSI) at 35 signals the stock is approaching oversold territory but not yet at extreme levels. The steep drop below resistance at $16.56 and a failure to hold above support at $15.36 would be bearish short term; however, current support remains intact. The 50-day moving average at $11.14 and 200-day moving average at $5.92 confirm a strong medium- and long-term uptrend. The MACD remains strongly positive at 3.53, suggesting ongoing upward momentum despite the recent pullback. Average volume is higher than recent daily turnover, highlighting investor interest but somewhat below the 3-month average volume of 77.65 million shares.

For June 13, the stock is likely to experience consolidation or modest recovery from oversold conditions, with a key level to watch at the stop-loss near $14.88. Over the next week, QBTS could oscillate between $15.36 support and $16.56 resistance, with a bullish bias given the recent uptrend and technical momentum indicators.

Fundamental Analysis

QBTS’s market capitalization stands at approximately $4.87 billion, reflecting investor enthusiasm for its leadership in quantum computing. Despite the impressive 1,360% rally year-over-year, earnings remain negative with a trailing twelve months EPS of -$0.66 and a negative P/E of -24.06, pointing to ongoing unprofitability. The discounted cash flow model yields a negative intrinsic value of approximately -$0.30 per share, underscoring the lack of near-term cash flow generation and valuation challenges common in emerging technology stocks.

Investor sentiment is bolstered by high-profile endorsements, including Nvidia’s CEO shifting to a bullish stance on quantum computing, which has catalyzed a renewed interest and validation of QBTS’s technology platform. Competitor pressures from IBM’s accelerated quantum initiatives create uncertainty about QBTS’s market share and technological edge, but the company’s pioneering status in quantum annealing adds competitive moat potential over the long term.

The consensus analyst target prices appear anomalously low ($2.00–$4.00), possibly indicative of cautious conservative valuation methods or data outliers inconsistent with current market pricing. Notably, 8 analysts currently rate QBTS as a "Buy," reflecting institutional confidence despite challenging fundamentals. The upcoming earnings announcement on August 6, 2025, will be critical to assess progress toward profitability and operational scaling.

Intrinsic Value and Long-Term Potential

The negative intrinsic valuation and EPS losses frame QBTS as a high-risk, speculative growth stock. Given the nascent stage of quantum computing commercialization, meaningful revenue and positive cash flow remain distant. However, the company’s leadership in a technology with transformative potential positions it as a long-term innovative play. Institutional interest and positive sector catalysts provide a foundation for future appreciation if QBTS can transition toward profitability and fend off competitive threats.

Investors should maintain a forward-looking perspective on QBTS with expectations aligned to technological breakthroughs and adoption timelines rather than current financial metrics alone. The steep rise reflects market anticipation rather than traditional valuation fundamentals.

Overall Evaluation

QBTS is classified as a Hold with a bullish technical setup but fundamental headwinds. The strong uptrend and momentum signals contrast with continued losses and negative cash flow metrics. The stock may experience near-term volatility but remains supported by sector tailwinds and company-specific developments. A cautious approach is warranted until post-earnings data provides clearer evidence of sustainable growth and profitability. The disconnect between price and conservative intrinsic valuations suggests risk of correction, while continuing innovation and improved commercialization could unlock substantial upside.