Why D-Wave Quantum’s (QBTS) Shares Are Falling

We recently published a list of 10 Firms Buck Broader Market Optimism. In this article, we are going to take a look at where D-Wave Quantum Inc. (NYSE:QBTS) stands against other firms buck broader market optimism.

Wall Street’s main indices finished in the green territory on Friday amid a series of catalysts buoying investor appetite.

The Dow Jones Industrial Average rose by 0.80 percent, while the S&P 500 and Nasdaq Composite rallied by 1.26 percent and 1.77 percent, respectively.

Despite the wider optimistic sentiment, 10 companies managed to post declines. Here is why:

To come up with Friday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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

D-Wave Quantum Inc. (NYSE:QBTS)

D-Wave Quantum Inc. (NYSE:QBTS) saw its share prices on Friday decline by 4.89 percent or 0.47 points to finish at $9.14 apiece as investors took profit following yesterday’s gain.

Despite the decline, prospects for the company remained strong, with optimism bolstered by quantum advancements led by Google’s Willow chips and Amazon’s Quantum Embark.

Analysts believe that the company will benefit from the advancements in the quantum computing sector especially as it is expected to be at the forefront of technological advancements, particularly AI, over the next few years.

US lawmakers also announced support for quantum computing development, recently promising $2.7 billion in government funding to supercharge quantum innovation across computing, sensing, and communications.

Overall, QBTS ranks 7th on our list of firms buck broader market Optimism. While we acknowledge the potential of QBTS as an investment, our conviction lies in the belief that 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 more promising than QBTS but that 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.