Should You Buy D-Wave Quantum Stock Before Earnings?
Key Points
D-Wave Quantum stock fell after its most recent earnings report.
Despite its share price dropping, D-Wave still trades at a pricey valuation.
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D-Wave Quantum (NYSE: QBTS) was one of the hottest quantum computing companies last year, with its share price rising 211%. But it hasn't had a good start to 2026, falling 25% as of Feb. 13.
The company will report fourth-quarter and full-year 2025 earnings on Feb. 26 before the market opens. While playing earnings is popular, especially with volatile stocks like this one, you may want to think twice if you're considering D-Wave in hopes of positive results this time.
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For starters, post-earnings price movements are unpredictable. D-Wave stock rose 6% in the first week after both its first quarter and second quarter 2025 earnings, but it plummeted 18% the week after its third quarter earnings announcement. The third quarter wasn't a bad one for D-Wave -- revenue and gross profits jumped by 235% and 353% year over year, respectively. That didn't stop shares from declining.
We're also not in the most favorable environment for quantum computing stocks. The tech sector as a whole has been facing headwinds, with much of Wall Street growing concerned about the massive capital expenditures companies are committing to artificial intelligence (AI) technology. Investors seem to be getting more risk-averse, which doesn't bode well for pure-play quantum computing companies that are far from profitable and trade at high valuations.
D-Wave certainly fits that description. It trades at over 200 times trailing sales, and it reported a net loss of $313 million over the first three quarters of 2025.
I'm personally not sold on any of the pure plays at the moment and prefer to invest in larger tech stocks with quantum computing divisions, such as Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). Even after its recent dip, D-Wave is still expensive, and I think it could continue to fall this year.
Should you buy stock in D-Wave Quantum right now?
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Lyle Daly has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
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