D-Wave Quantum, a quantum computing company, has seen its stock price skyrocket by 500% in a month. The company’s qubits can exist in multiple states at once, enabling complex calculations and processing large amounts of data. This technology is being explored for various applications, including financial modeling and drug discovery.
However, there are challenges to overcome, such as errors arising from increased complexity. Despite this, the company has made significant advancements with Google’s Willow chip and Amazon’s Quantum Embark. A $2.7 billion government funding for quantum computing has also fueled the rally in quantum stocks.
D-Wave generates revenue primarily through its QCaaS offerings, providing access to advanced quantum computing technologies. The company is working on various projects, including Leap and Ocean, which aim to build quantum applications. Despite its promise, quantum computing remains in a developmental stage, and D-Wave’s current revenue base of $9.4 million is limited.
As an investor, the focus will be on the future potential of quantum computing and D-Wave’s role in it. The company has reported operating losses of $74 million in the past year. QBTS stock has been volatile, with returns of -86% in 2022 and -39% in 2023. However, a comparison to the Trefis High Quality Portfolio shows that the latter has outperformed the S&P 500 each year, providing better returns with less risk.
Source: https://www.forbes.com/sites/greatspeculations/2024/12/18/whats-behind-the-500-rise-in-qbts-stock