D-Wave Quantum: Wall Street Sees Double the Upside, But the Stock Can't Escape Gravity
Published on 07/29/2026 at 12:02 | Redaktion boerse-global.de
The gap between what analysts say D-Wave Quantum is worth and what the market is willing to pay for it has rarely been wider. Fifteen analysts covering the stock rate it a "Strong Buy," with an average price target of $37.05 — more than double the current share price. Yet the stock continues to trade in the mid-teens, roughly 60% below its October 2025 record of €38.48, as investors weigh a string of positive developments against financial realities that remain stubbornly underwhelming.
On Wednesday, shares edged up 0.68% to €15.59, a modest recovery from the previous session's 9.71% slide that dragged the stock to €15.48. That drop came despite what should have been a catalyst: the successful completion of D-Wave's listing switch from the New York Stock Exchange to the Nasdaq on July 27, 2026. The move was intended to align the company with its quantum computing peers, but traders used the occasion to take profits, with no fresh negative news driving the selloff.
The AT&T Milestone That Changed the Narrative
The real story lies in what D-Wave has achieved with AT&T. The telecommunications giant has moved the company's quantum annealing system from pilot testing into full deployment, achieving a 240-fold acceleration in network optimization — what once took roughly an hour now completes in 15 seconds. CEO Alan Baratz has pointed to this as proof that annealing technology has crossed the chasm from proof-of-concept to genuine production application.
Benchmark launched coverage of D-Wave with a Buy rating and a $30 price target, simultaneously initiating coverage on IonQ and Rigetti Computing with targets of $60 and $25, respectively. Stifel reaffirmed its Buy and $35 target, while Mizuho lifted its target to $35, citing progress on the product roadmap. Rosenblatt held firm at $43, though it noted that the AT&T announcement contained no financial metrics.
Should investors sell immediately? Or is it worth buying D-Wave Quantum?
The Revenue Conundrum
For all the technical achievements, the numbers tell a different story. In the first quarter of 2026, D-Wave generated just $2.86 million in revenue — an 80.9% collapse from the prior year. Analysts expect the second quarter, due before the market opens on August 6, to deliver only $4 million. For the full year 2026, the consensus sits at $43 million against a market capitalization of roughly €6.35 billion.
That works out to a price-to-sales ratio above 480 based on trailing twelve-month revenue — a figure that bears point to as unsustainable. The bull case rests on a different metric: remaining performance obligations, or RPO, which surged 563% year-over-year to $42.4 million in the first quarter. The question is whether D-Wave can convert that contracted backlog into recognized revenue fast enough to justify the valuation.
Insider Sales Add to the Skepticism
Confidence within the company has come under scrutiny. Over the past 90 days, insiders have sold approximately 1.36 million shares worth $35.7 million, including transactions by both the CEO and CFO. On July 20, Chief People Officer Sophie Ames sold shares valued at roughly $52,000, following CEO Alan Baratz's sale of about 52,000 shares on July 14. The company characterized Baratz's sale as an automatic transaction to cover tax obligations from vesting restricted stock units.
The stock now sits 22% below its 50-day moving average of €20.01 and roughly 39% above its 52-week low of €11.12, set in March. The relative strength index stands at 42.2, leaving room for further downside before reaching oversold territory. Short interest of 17.8% of the float indicates a significant portion of the market continues to bet against near-term profitability.
D-Wave Quantum at a turning point? This analysis reveals what investors need to know now.
The August 6 Inflection Point
D-Wave holds $588.4 million in cash from the first quarter, providing a substantial runway. The company is also exploring up to $100 million in potential funding through the CHIPS Act. But the next catalyst is the second-quarter earnings release on August 6, followed by a conference call at 8:00 a.m. Eastern Time.
If the report shows that the AT&T partnership is beginning to generate measurable revenue and that the RPO backlog is converting, the current distance to the 200-day moving average of €19.67 could narrow quickly. If losses remain elevated and revenue stagnates, the stock may test the March low. For now, D-Wave sits in a familiar place for high-conviction growth stories: between what the technology promises and what the financial statements deliver.
Ad
D-Wave Quantum Stock: New Analysis - 29 July
Fresh D-Wave Quantum information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
