D-Wave Quantum (QBTS, Financial) experienced a substantial stock movement today, dropping 30.85% to $3.99. This decline is part of a larger trend among quantum computing stocks, influenced by industry skepticism and notable critiques from leaders like Meta's Mark Zuckerberg. These factors have raised questions about the immediate viability of quantum technologies.
Alongside D-Wave Quantum, stocks like Quantum Computing (QUBT) and Rigetti Computing (RGTI) have also seen significant declines, partly driven by continued market skepticism about the timeline for quantum computing's practical applications. The overarching market sentiment, further challenged by reduced expectations for Federal Reserve rate cuts, has severely impacted these unprofitable quantum companies.
Analyzing D-Wave Quantum’s (QBTS, Financial) financials reveals a company currently facing financial challenges. The company’s market capitalization stands at approximately $1.07 billion, yet its financial strength is considered poor, with a negative Altman Z-score of -5.65, indicating distress and a potential bankruptcy risk in the next two years. Additionally, D-Wave Quantum has shown a decline in revenue per share over the past 12 months, signaling potential growth and revenue concerns.
On the profitability front, D-Wave Quantum (QBTS, Financial) has consistently reported operational losses over the past three years. The company shows poor earnings quality, with a particularly low Sloan ratio of -36.11%, suggesting that earnings are heavily reliant on accruals instead of actual cash flow.
Despite these concerns, it is noteworthy that D-Wave Quantum (QBTS, Financial) is projected to significantly increase its fiscal 2024 and Q4 bookings. However, the planned stock sale, potentially diluting current shareholders by up to $150 million, adds another layer of complexity to its financial landscape.
When it comes to valuation, D-Wave Quantum (QBTS, Financial) currently holds a "No Data: Cannot Be Evaluated" status on the GF Value platform. This reflects the uncertain nature of its intrinsic value given its financial instability and lack of profitability history.
