Investors are optimistic about the potential of quantum computing, which could lead to major breakthroughs in drug discovery, AI, and materials science. D-Wave Quantum’s stock has surged 1,600% in three years but recently dropped by 38%, prompting questions about its future. The company’s revenue doubled in Q3 2025, with $836 million in cash reserves and a recent acquisition of Quantum Circuits for $550 million.

Despite D-Wave’s recent successes, there are concerns. Its Q3 sales were only $3.7 million, with a net loss of $140 million. The company’s valuation is extremely high, with a price-to-sales ratio of 280. Quantum computing remains speculative, and D-Wave’s financials may need significant improvement. Other players in the industry estimate that “useful” quantum computers are still 5-10 years away.

Before investing in D-Wave Quantum, consider that the Motley Fool’s Stock Advisor team didn’t include it in their top 10 stock picks. Their recommendations have historically produced substantial returns, such as $450,256 from Netflix and $1,171,666 from Nvidia. Stock Advisor’s total average return is 942%, far outperforming the S&P 500. Investors should weigh these factors before considering D-Wave.

Read more at Yahoo Finance: Down 38%, Should You Buy the Dip on D-Wave Quantum?