QBTS stock surges due to quantum computing growth, but faces competition pressure

From Nasdaq: 2025-01-10 11:19:00

D-WAVE QUANTUM QBTS shares have surged 420.3% in the past six months, outperforming the Computer and Technology sector and Internet – Software industry. IBM and Alphabet are also excelling in the quantum computing space.
QBTS’ expanding portfolio in quantum computing led to a 41% revenue growth in Quantum Computing-as-a-Service. Partnerships with Zapata Computing Holdings, Japan Tobacco, and Staque have been instrumental in driving growth for QBTS.
Earnings estimates for QBTS show an upward trend, with a Zacks Consensus Estimate for 2025 revenues at $15.42 million, reflecting a 76.22% year-over-year increase.
QBTS faces pressure from rising quantum competitors like Rigetti Computing, IBM, Google, and IonQ. Stretched valuation and competition may impact QBTS’ financial performance in the near term.
Investors should be cautious with QBTS stock due to its high valuation and stiff competition. With a Zacks Rank #3 (Hold), waiting for a more favorable entry point may be wise.