Why D-Wave Quantum Stock Led a Quantum Computing Crash in October

Shares of D-Wave Quantum (NASDAQ:QBTS) fell 35.7% in October 2026, according to data from S&P Global Market Intelligence. The S&P 500 (SNPINDEX:^GSPC) barely noticed, slipping 0.9% over the same period. D-Wave didn't do anything wrong, exactly. It just happens to be in a sector that suddenly needed a lot of cash, and investors didn't love that idea.

A sectorwide retreat

D-Wave had plenty of quantum computing company on the way down. IonQ (NYSE:IONQ) fell 31.5% in October, Quantinuum (NASDAQ:QNT) dropped 30.1%, and Rigetti Computing (NASDAQ:RGTI) lost 28.5%. The four stocks moved in near lockstep for most of the month, and that's just the top of a long list. D-Wave plunged just a little faster than the rest.

The real trouble started with IonQ. First, it agreed to buy cybersecurity firm Elisity for $1.3 billion in stock. Then it announced a $2 billion equity offering. D-Wave's stock fell on both occasions. That's a lot of new shares hitting the market in a hurry, and it reminded everyone that many quantum computing companies are burning through lots of cash nowadays. Dilutive fundraising always lurks just around the corner. It was IonQ last month, and D-Wave could be next, even with a decent cash cushion.

Later in the month, Barron's published an article questioning when the industry's technical promises will translate into meaningful revenue. D-Wave's annealing technology sets it apart from the competition for now, but rivals could enter this sub-market over time. And neither annealing computers nor quantum gate systems are powerful enough to solve the digital world's impossible problems at this point.

D-Wave's own news was pretty good. It extended a manufacturing deal with IonQ's SkyWater Technology, shipped Italy's first annealing quantum computer, and signed a partnership with LG CNS in South Korea. But none of these helpful events could stop D-Wave's slide.

Image source: The Motley Fool.

Big promises, small revenue

Let's talk valuation. D-Wave brought in $12.4 million of revenue over the last four quarters, down 44.2% year over year. The stock is still worth about $3.9 billion. That's roughly 316 times sales, a multiple that assumes a lot of growth is right around the corner.

In all fairness, D-Wave won't run out of money in 2027. The company holds roughly $500 million in net cash and carries little debt, so it is not under immediate pressure to raise funds. Short-sellers have bet against about 21.6% of the stock's float, however, and that kind of bearish pressure tends to amplify price swings in both directions.

The next big headline arrives Nov. 10, when D-Wave reports third-quarter results. Last quarter's update missed on both revenue and earnings, so the bar isn't sky-high; quantum computing investors are getting used to flimsy financials. Strong order bookings could spark a relief rally.

The stock is now down 60.4% year-to-date and trades 68.2% below its 52-week high. For long-term investors, October's drop lowers the entry price, but I'm not calling a bottom here. The long-term quantum story is tantalizing but still unproven. October just reminded everyone that in this sector, one company's cash grab can ripple through the whole group.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.