Why D-Wave Quantum Stock Plummeted This Week
Key Points
D-Wave stock suffered a sell-off after the company announced that it was executing all of its public warrants.
When holders move to exercise their warrants in exchange for stock, it will have a dilutive impact on current shareholders.
- 10 stocks we like better than D-Wave Quantum ›
D-Wave Quantum (NYSE: QBTS) stock got hit with big sell-offs over the last week of trading after the company announced financial restructuring moves. The quantum computing specialist's share price closed out the stretch down 14.8% despite a gain of 1.9% for the S&P 500 and a gain of 2.3% for the Nasdaq Composite.
On Oct. 20, D-Wave announced that it was moving forward with the redemption of outstanding stock warrants -- a move that sent the company's share price tumbling. Despite a relatively large pullback over the last week of trading, the company's stock is still up roughly 289% this year.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
D-Wave stock sinks as company announces warrant plan
D-Wave's announcement that it was redeeming all of its public warrants prompted substantial sell-offs for the stock across Monday, Tuesday, and Wednesday's trading. While shares did see some significant recovery later in the week, the company's share price closed out the week deeply in the red.
The company redeemed approximately five million outstanding stock warrants and stated that it expected the warrants to cease trading on the New York Stock Exchange on Nov. 17. The news prompted waves of selling because the redemption of the warrants could result in new shares being issued when holders move to exercise their warrants. The company said that it expected stock dilution of less than 2.1% for existing shareholders in the event that all outstanding warrants are exercised.
What's next for D-Wave Quantum?
Thanks to excitement surrounding technology breakthroughs and potential applications in artificial intelligence (AI) and other technology fields, excitement surrounding D-Wave and other quantum computing stocks has been red hot. As a result, quantum companies are currently commanding extremely growth-dependent valuations.
As of this writing, D-Wave is valued at approximately 455 times this year's expected sales. Investors will get a closer look at the company's performance and new tech initiatives when the quantum specialist reports its third-quarter earnings on Nov. 6.
Should you invest $1,000 in D-Wave Quantum right now?
Before you buy stock in D-Wave Quantum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and D-Wave Quantum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 20, 2025
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
