D-Wave Quantum (QBTS -9.51%) stock got off to a rough start following its debut on the market in August 2022, when it went public via a reverse merger with a special purpose acquisition company (SPAC). By the end of 2023, it had lost over 90% of its value.
However, investors who waited until the end of 2023 to open a position are likely very happy with their purchase of the quantum computing stock, and here’s why.
Image source: The Motley Fool.
The recovery of D-Wave Quantum stock
Investors who invested $1,000 in D-Wave Quantum stock at the end of 2023 and held on now have an investment worth about $21,650.
Investors who may have been skeptical about quantum computing’s practicality warmed to D-Wave Quantum as other companies found they could apply its quantum annealing computers to rapidly solve vexing problems in supply chain logistics or portfolio optimization. This gives it more obvious potential to build on the tech industry’s AI-driven advances.
Despite those gains, the lion’s share of which occurred in 2025, D-Wave Quantum stock faces considerable uncertainty. Peers like IonQ and Rigetti Computing are developing competing quantum computing systems, as are a host of established tech giants including Google parent Alphabet and IBM.
Moreover, the company has thus far booked only modest revenues accompanied by massive losses, and its price-to-sales ratio of around 550 leaves it without a meaningful valuation measure. Those factors could leave investors wondering whether they should consider D-Wave Quantum a buy.
Today’s Change
(-5.90%) $-1.00
Current Price
$15.94
Key Data Points
Market Cap
Day’s Range
$15.93 – $16.94
52wk Range
$12.53 – $58.15
Volume
496.5K
Avg Vol
30M
Gross Margin
-3975.14%
D-Wave has reported a free cash flow of negative $119 million over the trailing 12 months. Due to the $546 million in liquidity it has on its books, it can probably survive burning cash at that rate for a few more years without needing to issue new shares or add to its debt.
However, that negative free cash flow also means it will have to increase revenue growth and improve its financials. Its prospects on those fronts remain uncertain, but if it can make financial improvements while remaining a leader in the quantum computing industry, its stock gains since the end of 2023 could be just the beginning.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, International Business Machines, and IonQ. The Motley Fool has a disclosure policy.