D-Wave Quantum (QBTS) Stock Falls Amid Valuation Critique By Kerrisdale Capital

Shares of D-Wave Quantum Inc QBTS fell 4.5% to $7.03 during Tuesday's trading after Kerrisdale Capital released a report questioning the company's business fundamentals and long-term viability. Benzinga reached out to D-Wave for comment but has not received a response.

What To Know: The short seller said D-Wave's quantum annealing technology is a niche solution with limited commercial relevance and growing obsolescence compared to gate-model quantum systems favored by peers like IBM and Google.

Kerrisdale highlighted that despite over a decade of operations, D-Wave has never generated more than $9 million in recurring annual revenue, and its 2024 revenues were flat year-over-year.

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The report characterizes D-Wave's hybrid solutions—which combine classical and quantum computing—as largely classical in nature, citing interviews with former employees who alleged the quantum component offers little to no practical advantage.

Kerrisdale also questioned the company's recent "quantum supremacy" announcement, suggesting the benchmark was a custom-tailored, academically interesting but commercially irrelevant problem.

With shares trading at 57x consensus 2026 revenue estimates, Kerrisdale described the current valuation as unsustainable and driven by hype rather than fundamentals.

While D-Wave has announced a pivot toward gate-model quantum computing, the report also noted a lack of progress or credible roadmap in that direction.

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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 $7.03 as of publishing time, $100 would buy you 14.2 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.

According to data from Benzinga Pro, QBTS has a 52-week high of $11.95 and a 52-week low of $0.75.