D-Wave Quantum Inc. (NYSE:QBTS)’s shares are up by 24% over the past year and are down by just as much year-to-date. Cramer hasn’t held back discussing the firm and in most appearances, he has stressed the need to evaluate the firm’s business. As D-Wave Quantum Inc. (NYSE:QBTS) reported its second quarter earnings on August 6th, the firm’s shares closed the day 9% lower. Cramer discussed the move and wondered whether the market was becoming realistic about D-Wave Quantum Inc. (NYSE:QBTS):
“What’s incredible is that we never cared about earnings before, for this, for NuScale. And suddenly we care, I don’t get it. I just think again, once again, there’s kind of a realism sinking in. Let’s, a lot of these guys have had such big moves. They’re not based on anything. Or, let’s just take some profits. I think the Situational mindset is going to be with us for a long time.
While the shares closed lower, D-Wave Quantum Inc. (NYSE:QBTS)’s earnings came with several key figures that support the bullish argument. Arguably, the strongest of these was the firm’s first half of 2026 bookings. These surged by 1,120% to $35.5 million. The bookings surge came due to purchase and enterprise agreements with Florida University and a Fortune 100 company. Additionally, 62% of D-Wave Quantum Inc. (NYSE:QBTS)’s second quarter revenue of $3.1 million was accounted for by commercial customers. Both these factors, along with a 668% jump in remaining performance obligations (RPOs), created solid avenues for tailwinds should the firm demonstrate sustained performance in the future.
Yet, on the flip side, D-Wave Quantum Inc. (NYSE:QBTS)’s second quarter revenue dipped by 0.6% annually and came after its Q1 revenue had dropped by 81% to $2.9 million due to revenue recognition procedures. Additionally, operational, R&D, acquisitions and other spending has also led the firm’s EBITDA loss to widen to $37 million from $20 million. These also led D-Wave Quantum Inc. (NYSE:QBTS)’s first half operating expenses to sit at $111.5 million to more than double over the year-ago figures of $53.6 million. The lack of revenue growth indicates that bookings are not translating into sales. Consequently, aggressive future spending without adequate bookings conversion could generate headwinds.
Shifting towards hedge funds and valuation, D-Wave Quantum Inc. (NYSE:QBTS)’s price to sales ratio of 610.97 is quite rich and leaves little room for disappointment. However, the high value is somewhat of a norm, with Rigetti’s P/S being 465. Short interest as a percentage of float is equally high and sits at 19.98% as of July end, with 19% of Rigetti’s float also short. In Q4 2025, 22 hedge funds tracked by Insider Monkey had held a stake in QBTS and this figure grew to 26 in Q1 2026.
While Insider Monkey acknowledges the risk and potential of QBTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QBTS that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
