D-Wave Quantum (QBTS) Stock Is Surging: What's Going On?

Shares of D-Wave Quantum Inc QBTS are surging Wednesday afternoon. The stock's rally was ignited after investment firm Canaccord Genuity initiated coverage on the quantum computing company with a Buy rating.

What To Know: Canaccord also announced a price target of $20 per share. The move sent shares trading sharply higher throughout the session, near a new peak for the past year. This bullish analyst action builds on positive momentum from earlier in the week.

On Monday, D-Wave released a compelling study highlighting growing enterprise demand for quantum optimization. The report, conducted in collaboration with Wakefield Research, revealed that 81% of surveyed business leaders believe they have reached the limits of classical computing for optimization problems.

The study showed high expectations for returns, with 73% of leaders anticipating a return on investment exceeding $1 million within the first year of adopting quantum solutions. D-Wave CEO Dr. Alan Baratz stated the findings reflect “strong momentum toward enterprise adoption.”

Benzinga Edge Rankings: According to Benzinga Edge stock rankings, QBTS shows an extreme momentum profile. The stock boasts an exceptional Momentum score of 99.71, placing it in the top percentile of stocks based on recent price performance.

In contrast, the company has a very low Value score of 3.46, suggesting that based on fundamental metrics, the stock may be considered overvalued at its current price. This combination typically indicates a stock that is popular with traders following strong trends, rather than one sought by investors looking for a bargain.

Price Action: According to data from Benzinga Pro, QBTS shares are trading higher by 11.9% to $19.69 Wednesday afternoon. The stock has a 52-week high of $20.56 and a 52-week low of $0.75.

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How To Buy QBTS Stock

By now you're likely curious about how to participate in the market for D-Wave Quantum – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of D-Wave Quantum, which is trading at $19.34 as of publishing time, $100 would buy you 5.17 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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