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Yahoo
7 days ago
- Business
- Yahoo
Better Quantum Computing Stock: D-Wave Quantum vs. IonQ
Quantum computing is in its early stages, and two promising companies in the field are D-Wave and IonQ. D-Wave generated a jaw-dropping 509% year-over-year increase in first-quarter sales to $15 million. IonQ is constructing a quantum computer network, and to that end, has announced a $1 billion equity offering. 10 stocks we like better than IonQ › Just as the internet transformed society, quantum computers hold a similar promise. These groundbreaking machines harness quantum physics to perform complex calculations in minutes that would take today's supercomputers centuries. However, today's quantum computers are error-prone and difficult to scale. The first businesses to construct devices capable of widespread use could revolutionize whole industries. For that reason, quantum computer companies D-Wave Quantum (NYSE: QBTS) and IonQ (NYSE: IONQ) present intriguing investment opportunities. But is D-Wave or IonQ the superior investment in this nascent sector? An examination of both can help you arrive at an answer. D-Wave shares have made an impressive run in 2025. The stock is up over 90% this year, hitting a 52-week high of $19.77 in May. Its shares took off because of a massive 509% year-over-year jump in first-quarter revenue, hitting $15 million. To put that in perspective, the Q1 sum alone was far more than D-Wave's total sales of $8.8 million for all of 2024. The stupendous revenue growth was due to D-Wave's first sale of its proprietary Advantage quantum machine. In years past, the bulk of its revenue came from selling quantum computing as a service (QCaaS), in which customers pay a fee for remote access to the company's quantum capabilities through the cloud. Thanks to its exceptional revenue, D-Wave's Q1 operating loss improved to $11.3 million from $17.5 million in 2024. The company also boasted a solid balance sheet. First-quarter total assets were $325.6 million with a whopping $304.3 million of that in cash. First-quarter liabilities totaled $118.2 million. D-Wave management stated that its Q1 cash balance is sufficient to sustain the business until it becomes profitable. Since then, the company further boosted its cash reserves to approximately $815 million through an equity offering. Some of the funds are earmarked for acquisitions. IonQ's 2025 stock performance has been more muted than D-Wave's. Its shares are up 9% through July 9. A contributing factor is IonQ's lackluster Q1 results. Revenue reached $7.6 million, which was flat compared to 2024. Worse, while revenue failed to grow, expenses certainly did. The company's Q1 operating loss of $75.7 million was a significant increase over the prior year's loss of $52.9 million. That said, the company has a strong balance sheet. Total Q1 assets were $850.1 million versus total liabilities of just $85 million. On top of that, IonQ announced a $1 billion equity offering on July 7, which should further shore up its finances. IonQ has been on a tear acquiring businesses over the past year as it attempts to build a quantum computing network. Considering the internet exists because of computer networking, IonQ's approach could be a game changer. But the strategy is expensive, since it must assemble many capabilities to make a viable quantum network. For instance, these networks cannot extend far today, so IonQ acquired Lightsynq Technologies, which is working on tech to expand the range quantum devices can be networked. While IonQ seeks to build a quantum network, D-Wave claims to be the sole provider of both the prevailing quantum gate technology and quantum annealing, a technique for finding optimal solutions among numerous possibilities. It's too early to tell whether IonQ or D-Wave's approach will win out over the long run, and that's the challenge in choosing between these two. Either company could become a leader in the field, or it could be a much larger competitor, such as Microsoft, which has developed its own quantum technology called topological qubits. In addition, D-Wave's sizable Q1 result may be a feat that it won't repeat anytime soon. Its sale of an Advantage system is a departure from the usual QCaaS and professional services revenue, which provided nearly all its income over the past two years. As for IonQ, it may have experienced an underwhelming Q1, but it exited 2024 with 95% year-over-year revenue growth to $43.1 million. It also expects 2025 sales to reach between $75 million and $95 million, which would represent a substantial jump up from 2024. Another consideration is the share price valuation of these companies, which can be assessed with the price-to-sales (P/S) ratio. The chart below shows that the P/S multiples for D-Wave and IonQ are not only higher than a year ago, but considerably greater than Microsoft's. This suggests shares of D-Wave and IonQ are overpriced. Considering their sky-high valuations and the uncertainty surrounding which quantum computing technology will eventually dominate, the optimal strategy is to wait for Q2 earnings before deciding to buy shares in either company. This lets you see whether D-Wave's Q1 results are a one-off, and if IonQ can bounce back from tepid Q1 sales to achieve its projected year-over-year growth for 2025. Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and IonQ wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Robert Izquierdo has positions in IonQ and Microsoft. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Better Quantum Computing Stock: D-Wave Quantum vs. IonQ was originally published by The Motley Fool
Yahoo
04-07-2025
- Business
- Yahoo
Is D-Wave Quantum Stock a Buy Now?
D-Wave has taken its investors on a wild ride since its public debut. A lot of growth has already been baked into its bubbly valuations. It will remain a volatile and speculative stock for the foreseeable future. 10 stocks we like better than D-Wave Quantum › D-Wave Quantum (NYSE: QBTS), an early mover in the quantum computing market, went public by merging with a special purpose acquisition company (SPAC) on Aug. 22, 2022. It started trading at $10, but it sank to a record low of $0.41 on May 12, 2023. At the time, its persistent dilution, steep losses, and sky-high valuation all drove away its investors. Rising interest rates and threats of a potential delisting made its volatile stock even less appealing. But as of this writing, D-Wave's stock trades at about $14. If you had invested $1,000 in the stock at its all-time low, your investment would be worth more than $34,000. The bulls rushed back as interest rates declined, the quantum computing market heated up again, and it rolled out a powerful new processor. But is it still worth buying today? In traditional binary computers, processors store their data in zeros and ones. But in quantum computers, zeros and ones can be stored simultaneously in qubits. That difference allows quantum computers to process a wider range of data at a much faster rate than binary ones. Yet quantum computers are still bigger, more expensive, and prone to make more mistakes than their binary counterparts. That's why they're still mainly used for niche research projects at government agencies and universities instead of mainstream computing applications. D-Wave Quantum is trying to break out of its niche with its quantum annealing tools, which help companies streamline their schedules, workflows, supply chains, and logistics networks. As a quantum-powered "efficiency expert," D-Wave runs a company's processes through different scenarios and identifies the one that consumes the least energy as the most efficient one. That approach could help D-Wave challenge traditional cloud-based analytics companies, and over 100 organizations -- including Deloitte, Mastercard, Lockheed Martin, and Accenture -- are already using its services. D-Wave designs its own chips and hardware, and it provides its own cloud-based services through its Leap platform -- which can be integrated into the world's top cloud infrastructure platforms. In 2024, D-Wave only generated $8.8 million in revenue, most of which came from its cloud-based quantum computing services, as it racked up a net loss of $143.9 million. But in 2025, analysts expect its revenue to nearly triple to $24.4 million as it narrows its net loss to $72.9 million. That growth should be driven by its new 4,400-qubit Advantage2 processor, which can solve complex 3D lattice problems approximately 25,000 times faster while consuming less power than its first-gen Advantage processor. It officially launched the Advantage2 quantum system for its Leap cloud platform in May. Meanwhile, its new LaunchPad platform for Leap -- which offers free trials, support, and rapid pilot-to-production tools for enterprise R&D customers -- could lock in new customers and boost its recurring subscription-based revenues. It also plans to add more quantum AI tools (including a more powerful neural network and tighter integrations with data center GPUs) to tackle more AI and machine learning workloads. Those upgrades could attract the attention of more enterprise customers, tether it to the booming AI market, and elevate D-Wave's reputation as the quantum computing play for more practical business applications. If those efforts bear fruit, analysts expect its revenue to surge 56% to $38.1 million in 2026 and nearly double to $74.1 million in 2027. They also expect it to narrow its losses in both years, but it won't come close to breaking even anytime soon. That growth trajectory would be impressive, but it's already priced for perfection at 60 times its projected sales for 2027. It has also increased its number of shares by 184% since it closed its SPAC merger, mainly due to its secondary offerings and stock-based compensation costs, and that dilution will continue as long as it keeps burning cash. D-Wave is carving out a niche in the nascent quantum computing market, but it still faces plenty of competition from "universal" gate-based processors from companies like IBM, Alphabet's Google, Rigetti, and IonQ -- all of which aim to solve a broader range of problems than quantum annealing. If D-Wave struggles to keep pace with those challengers, its business could eventually collapse. Lastly, D-Wave's insiders were also net sellers over the past year. Over the past three months, they sold more than three times as many shares as they bought. That chilly insider sentiment suggests that too much growth might be baked into its current valuations. D-Wave looks expensive relative to its near-term growth, but it's tough to tell how much the quantum computing market could expand over the next few decades. It might be worth nibbling on as a speculative play on the long-term growth of the quantum computing market, but I wouldn't go all-in on the stock at these levels. Before you buy stock in D-Wave Quantum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and D-Wave Quantum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc, Alphabet, International Business Machines, and Mastercard. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy. Is D-Wave Quantum Stock a Buy Now? was originally published by The Motley Fool
Yahoo
04-07-2025
- Business
- Yahoo
D-Wave Quantum Rallies on Capital Raise: More Upside Ahead for QBTS?
D-Wave Quantum Inc. QBTS is demonstrating strong financial momentum, banking on increased operational scale. In the first quarter of 2025, the company reported a staggering 509% year-over-year increase in revenues. This surge was largely driven by the sale of an Advantage2 quantum system valued at approximately $12.6 million to Germany's Julich Supercomputing Center. The sale highlighted QBTS' evolving revenue model, which is shifting toward a hybrid mix of high-value system sales and recurring subscription-based Quantum Computing-as-a-Service. Financial performance strengthened across the board. D-Wave posted a GAAP gross margin of 92.5%, achieved its lowest net loss since becoming a public company, and cut its adjusted EBITDA loss by 53% year over year, demonstrating meaningful operating leverage as revenues scaled up. Building on this momentum, in June, D-Wave completed a $400 million at-the-market equity offering done at a 149% premium compared to its January 2025 raise. The offering boosted the company's total cash reserves to approximately $815 million, reinforcing what management claims to be the strongest balance sheet of any publicly traded quantum computing company. These funds are kept for strategic acquisitions, expansion of cloud services, R&D and deployment of customer systems, giving the company significant flexibility to accelerate its roadmap and expand its market footprint. As a result of these, shares of D-Wave Quantum have skyrocketed 152% over the past three months, largely outperforming the broader industry, sector and the benchmark. Image Source: Zacks Investment Research Rigetti Computing RGTI: In June 2025, Rigetti completed a $350 million at-the-market stock offering, boosting its cash reserves to approximately $575 million with no debt. The capital infusion will primarily fund expansion of its superconducting hardware, scale internal manufacturing capabilities, and support strategic acquisitions or partnerships. In parallel, Rigetti recently partnered with Q-CTRL to integrate its "Fire Opal" error suppression software into its latest 84-qubit Ankaa-3 system, a move aimed at improving performance for real-world applications, such as financial portfolio optimization (by 32×) and increased qubit circuit reliability. IonQ IONQ: It has been actively executing a multi-pronged growth strategy through acquisitions and ecosystem development. In June 2025, it completed the acquisition of photonic networking specialist Lightsynq, bolstering its quantum interconnect and memory roadmap to help deliver modular, fault-tolerant architectures and advance toward building a quantum Internet. Complementing this, IonQ agreed to acquire Oxford Ionics, further accelerating its progress toward a 2-million-qubit machine and an 80,000 logical qubit target by 2030. On the commercial front, IonQ is deepening educational and networking partnerships in South Korea. Average Target Price for QBTS Shows More Room for Growth Based on short-term price targets offered by six analysts, D-Wave Quantum is currently trading 8% below its average Zacks price target. Image Source: Zacks Investment Research D-Wave Quantum currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IonQ, Inc. (IONQ) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
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D-Wave's Quantum Rally Keeps Defying Gravity
D-Wave (NYSE:QBTS) felt like it might peak? Well, it just added another 7.8% on July 3and top analysts at Roth MKM and Cantor Fitzgerald aren't hitting the brakes anytime soon. After a dizzying 1,352% climb over the past year, QBTS closed Wednesday at $15.98. Roth MKM's Sujeeva De Silva stuck with his Buy call and nudged the target up to $18, while Cantor Fitzgerald jumped in with an Overweight rating and a $20 price tag. Their pitch? Real-world wins in logistics and scheduling problems, plus that high-profile demo of quantum supremacy, are showing customers D-Wave's tech can actually move the needle. Q1 was no slouch, either: revenue shot up 509% to $15 million thanks to Advantage2 system sales, losses shrank from $17.3 million to $5.4 million year-over-year, and gross margins rocketed to 93.6%. With $304 million in cash on hand and fresh dealsfrom Ford Otosan in autos to Japan Tobacco in manufacturingD-Wave's turning breakthroughs into dollars. Unlike Google (NASDAQ:GOOG) or IBM (NYSE:IBM), D-Wave bets on quantum annealinga niche that speaks directly to companies wrestling with tough optimization tasks. That focus, combined with serious analyst backing and strong numbers, could keep QBTS's rocket fuel burning. Two heavyweight firms are backing D-Wave, and the Q1 results give them ammo. If D-Wave can keep translating its tech chops into steady revenue, this quantum stock might just have another leg up. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
D-Wave's Quantum Rally Keeps Defying Gravity
D-Wave (NYSE:QBTS) felt like it might peak? Well, it just added another 7.8% on July 3and top analysts at Roth MKM and Cantor Fitzgerald aren't hitting the brakes anytime soon. After a dizzying 1,352% climb over the past year, QBTS closed Wednesday at $15.98. Roth MKM's Sujeeva De Silva stuck with his Buy call and nudged the target up to $18, while Cantor Fitzgerald jumped in with an Overweight rating and a $20 price tag. Their pitch? Real-world wins in logistics and scheduling problems, plus that high-profile demo of quantum supremacy, are showing customers D-Wave's tech can actually move the needle. Q1 was no slouch, either: revenue shot up 509% to $15 million thanks to Advantage2 system sales, losses shrank from $17.3 million to $5.4 million year-over-year, and gross margins rocketed to 93.6%. With $304 million in cash on hand and fresh dealsfrom Ford Otosan in autos to Japan Tobacco in manufacturingD-Wave's turning breakthroughs into dollars. Unlike Google (NASDAQ:GOOG) or IBM (NYSE:IBM), D-Wave bets on quantum annealinga niche that speaks directly to companies wrestling with tough optimization tasks. That focus, combined with serious analyst backing and strong numbers, could keep QBTS's rocket fuel burning. Two heavyweight firms are backing D-Wave, and the Q1 results give them ammo. If D-Wave can keep translating its tech chops into steady revenue, this quantum stock might just have another leg up. This article first appeared on GuruFocus.
