D wave quantum (NYSE: QBTS) is one of the most prominent quantum computing companies on the market, positioning itself as the “first commercial quantum computing provider.”
The company along with other companies IonQ and RighettiCapturing the imagination of investors who believe its technology could be revolutionary, quantum investing is exploding as D-Wave and its peers race to create viable quantum computing systems. D-Wave's stock price will rise 313% in 2025, and has gained as much as 3,670% in the past year.
So, if you invested $10,000 in D-Wave stock a year ago, how much money would you have? A whole lot. An investment of $10,000 a year ago has grown to $377,650. You can see the incredible gains in the chart below.
Data comes from YCharts.
While this is definitely incredibly rewarding, I don't think it will last. The potential of quantum is incredible; it's undeniable. The problem is that the technology still has a long way to go before it can be commercialized. We're still in the early stages of development, and it's still an open question whether this is possible, let alone when.
Image source: Getty Images.
Given this, D-Wave's $11.9 billion market cap doesn't make sense. Although the company claims to have solved real-world problems with its hybrid solutions, its trailing 12-month revenue was still just $22.3 million and it was operating at a heavy loss. I would stay away from D-Wave and other pure-play quantum stocks until they can prove they can make money from their product. Their valuations don't make sense right now.
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