QBTS Shows Short-Term Momentum Despite Negative Earnings; Analysts Remain Bullish Ahead of Earnings

Technical Analysis

D-Wave Quantum Inc. (QBTS) closed at $7.53 on April 25, 2025, posting a 2.45% gain. The stock traded within an intraday range of $7.07 to $7.67, demonstrating intraday resilience above the near-term stop-loss level of $7.10 and current support at $7.25. The Relative Strength Index (RSI) at 65 suggests the stock is approaching overbought territory but remains below the critical 70 threshold. The 50-day moving average of $7.03 sits below the current price, indicating short-term bullish momentum, while the 200-day moving average at $3.88 confirms a sustained long-term uptrend.

However, the MACD of -0.83 over the past three months indicates bearish momentum, signaling potential near-term consolidation. The Average True Range (ATR) of 10.28 seems abnormally high relative to price, likely an artifact or miscalculation. Volume at 20.1 million is below the 61.9 million average, suggesting reduced trading interest on the latest session but possibly indicating a pause after recent gains. Resistance is identified at $8.36, a level that needs to be overcome for further upside.

For the next trading day (April 28), QBTS is poised for moderate gains, buoyed by recent momentum and positive investor sentiment related to upcoming quantum system installations. Over the coming week, the stock might experience volatility ahead of its May 8 earnings announcement, with a probable trading range between $7.25 and $8.36. A breakout above resistance could target the psychological $9.00-$10.00 levels, while failure may see a retest of immediate support.

Fundamental Analysis

QBTS operates in the emerging quantum computing sector, positioning it as a growth-oriented technology player. Despite promising technological advancements and strategic installations driving recent investor enthusiasm, fundamental metrics remain challenged. The trailing twelve months (TTM) earnings per share (EPS) is negative at -$0.75, with a price-to-earnings ratio of -9.85, consistent with companies currently reinvesting heavily into R&D and scaling operations.

The discounted cash flow (DCF) model yields a negative intrinsic value (-$0.63), highlighting ongoing cash burn and negative free cash flow projections. Market capitalization stands at approximately $2.13 billion, reflecting substantial market interest but also an elevated risk profile typical of early-stage quantum technology firms.

Consensus analyst opinions lean bullish with 8 "buy" calls and no holds or sells, suggesting confidence in the company’s growth trajectory despite near-term financial headwinds. The significant stock appreciation (+18%) over the past week underscores growing investor appetite, presumably on expectations of market expansion and technological adoption.

The upcoming earnings release on May 8 will be a pivotal event, potentially validating growth assumptions or triggering volatility depending on guidance and execution metrics.

Intrinsic Value and Long-Term Potential

From an intrinsic valuation perspective, QBTS currently trades above its DCF-based intrinsic estimate, suggesting the market is pricing in considerable future growth and disruptive potential rather than present profitability. This is typical for frontier tech sectors like quantum computing, where long-term scale and technological breakthroughs could deliver outsized returns.

Long-term investment merits rest on the company’s ability to commercialize its quantum computing platforms, expand service ecosystems, and capture enterprise and government demand. The technological moat and first-mover advantages are significant, but these are counterbalanced by high capital expenditure needs, competitive pressures, and evolving industry standards.

If the company successfully leverages its current momentum, executes on growth initiatives, and transitions toward sustainable profitability, QBTS could evolve into a multi-bagger over a 3-5 year horizon.

Overall Evaluation

QBTS is characterized by robust short-term momentum and long-term technological promise but is currently constrained by negative earnings and cash flow fundamentals. The stock is technically positioned to advance further near term, supported by bullish analyst sentiment and positive news flow.

Classifying QBTS as a "Buy" candidate reflects enthusiasm for its market potential and growth positioning, tempered by acknowledgment of execution risk and valuation premium relative to intrinsic metrics. Near-term traders should monitor support at $7.25 and resistance around $8.36, while investors with longer horizons must weigh quantum computing’s disruptive possibilities against inherent volatility.

In sum, QBTS embodies a speculative growth opportunity with compelling catalysts but lacks mature financial metrics, making it suitable for exposure by those accepting of elevated risk in pursuit of superior returns.