Why D-Wave Quantum Inc. (QBTS) Went Up On Friday?

We recently published a list of AI Stocks Dominate Friday’s Top 10 Performers. In this article, we are going to take a look at where D-Wave Quantum Inc. (NYSE:QBTS) stands against other AI stocks that dominate Friday’s top performers.

The stock market bounced back on Friday, erasing the week’s losses following news that a feared government shutdown is unlikely to happen amid news that a funding plan is likely to be passed.

The tech-heavy Nasdaq recorded the highest gain, adding 2.61 percent, followed by the S&P 500 with a 2.13-percent gain, and the Dow Jones with 1.65 percent.

Ten companies, predominantly under the AI industry, mirrored the broader market optimism, registering strong double-digit gains during the session. In this article, we have named the day’s best performers and detailed the reasons behind their performance.

To come up with the list, we only considered those with $2 billion in market capitalization and $5 million in trading volume.

A modern computer datacenter, running an advanced quantum computer system.

D-Wave Quantum Inc. (NYSE:QBTS)

D-Wave Quantum skyrocketed by 47.6 percent on Friday before ending the day just up by 46.89 percent at $10.15 apiece as investors cheered the company’s strong growth in bookings, offsetting disappointing revenues and net income performances.

In its latest earnings release, QBTS said bookings expanded by 502 percent to $18.3 million in the fourth quarter from only $3 million in the same period a year earlier, while bookings in the full year period registered a 128-percent jump at $23.9 million from $10.5 million year-on-year.

Meanwhile, net loss in full year 2024 increased by 74 percent to $143.9 million from $82.7 million year-on-year, while net loss for the fourth quarter surged by 438 percent to $86.1 million from $16 million year-on-year, primarily due to a non-cash, non-operating charge related to the remeasurement of its warrant liability that materially increased as a result of the significant price appreciation of its warrants.

Overall, QBTS ranks 1st on our list of AI stocks that dominate Friday’s top performers. While we acknowledge the potential of QBTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as QBTS but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.