D-Wave Quantum Shares Plunge 24.6% in July as $18.4 Million Loss Fuels Skepticism
Updated
Updated · Yahoo Finance · Aug 5
D-Wave Quantum Shares Plunge 24.6% in July as $18.4 Million Loss Fuels Skepticism
2 articles · Updated · Yahoo Finance · Aug 5
Summary
D-Wave Quantum fell 24.6% in July as investors questioned whether expensive quantum-computing bets can generate returns in a market already uneasy about heavy tech spending.
An $18.4 million first-quarter net loss on just $2.9 million in revenue sharpened that concern, with R&D spending more than doubling to nearly $26 million and G&A costs jumping 150% to over $20 million.
A 496 price-to-sales ratio—versus about 6 for the broader tech sector—left the stock especially exposed as investors reassessed richly valued companies with unclear paths to profitability.
Aug. 6 second-quarter results are the next test: analysts expect roughly $43 million in sales, up 75% from a year earlier, but spending discipline is likely to matter more than revenue growth.