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Is D-Wave Quantum Stock Overvalued?

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 12/17/2025, 2:33 pm ET 12/17/2025, 2:33 pm ET | 5 min 5 min read
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On Monday, D-Wave Quantum Inc.’s stocks have been trading down by -4.74% in response to strategic restructuring concerns.

  • John M. Markovich, CFO of D-Wave Quantum, unloaded 200,000 shares valued at $5.26M on Dec 8, 2025, hinting at potential internal sentiment.
  • Earlier, on Nov 21, 2025, he sold an identical number of shares for a slightly lower total of $4.59M, reflecting a consistent reduction in personal investment.
  • These share sales come against a backdrop of challenging market dynamics for the company, as evidenced by the financial indicators and stock performance figures.

Candlestick Chart

Live Update At 14:32:58 EST: On Wednesday, December 17, 2025 D-Wave Quantum Inc. stock [NYSE: QBTS] is trending down by -4.74%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Overview of D-Wave Quantum Inc.

Traders are constantly striving to understand the nuances of the market and how to maximize their profits while minimizing their losses. As millionaire penny stock trader and teacher Tim Sykes says, “It’s not about how much money you make; it’s about how much money you keep.” This philosophy highlights the importance of not only generating high returns but also effectively managing risk and preserving capital. By prioritizing strategies that protect their earnings, traders can ensure long-term success and financial stability in the unpredictable world of trading.

D-Wave Quantum has faced a roller-coaster year, with its stock reflecting significant volatility. While periods of promise have been there, recent financial challenges need attention. To take a closer look at D-Wave Quantum’s health, one must examine its recent earnings and key financial metrics.

The company’s profitability and valuation ratios raise eyebrows. Unfortunately, metrics such as EBIT margin at -1647.5% and EBITDA margin of -1640.1% offer a grim picture, suggesting operational inefficiencies and potential liquidity drags. Equally concerning is the enterprise value sitting at $256.91M and a startling price-to-sales ratio of 344.26. For investors, these numbers suggest a company fraught with high risk and low current earnings potential.

With negative pretax profit margins and a steep negative return on assets and equity, the company struggles with profitability. A whopping debt-equity ratio of 0.06 reflects a leveraged position but not overly debt-heavy. But while this might seem reassuring, the return on invested capital being alarmingly negative suggests that the funds invested fail to produce expected returns.

Despite a disturbing cash flow situation, where operating cash flow dipped to -$19.05M, the company maneuvered to position its end cash at approximately $658.25M through short-term strategies, including stock option exercises and debt repurchases. But at a glance, capital expenditures of roughly $1.01M show an effort towards fostering technological tools.

What does all this mean in the broader market context? D-Wave’s valuations indicate a stock that may be overestimated, leading it to stand precariously over the edge between growth and instability.

Impact of Internal Share Sales and Stock Performance

The influence of the CFO reducing his holdings cannot be overlooked. Such major insider share movements often hint at either foreshadowing possible market downturns or merely personal profit-taking steps.

The chart for D-Wave Quantum reveals patterns of inconsistencies. For instance, despite some highs, prices have spiraled from mid-$27 points to as low as $23 in a matter of days. Observers note this seesawing as indicative of the turbulence affecting the stock, with numerous investors finding the quantum computing firm a risky proposition amidst these fluctuations.

Trading patterns emphasize the precariousness. Intraday spreads showcase the highs touching $26.29 only to fall minutes later. For retail traders, these erratic swings suggest careful navigation is essential.

More Breaking News

Summing Up: Navigating The Quantum Investment

Ultimately, assessing D-Wave Quantum reveals cautionary tales typical in an emerging tech world. Strong potential exists—the market it operates in signifies a future bursting with possibilities. Yet, what’s at play presently are these underwhelming financial health signals and preceding insider trade activities that suggest skepticism.

Traders are encouraged to proceed with prudence. The journey of past stock movements indicates that gains can be rapidly erased. As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” Until there’s concrete financial improvement or a strategic breakthrough, this stock remains in delicate balance. Long-term believers may see this as an entry for potential; short-term traders, however, should ride the waves with heightened alert.

The takeaway here is simple: current trading in D-Wave demands fierce diligence and readiness for volatility. By constantly assessing emerging financial indicators and staying watchful of significant internal changes, market participants can gauge their own risk tolerance against this tech titan’s oscillating path.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”