Why D-Wave Quantum Inc. (QBTS) Went Down On Tuesday

We recently published a list of Why These 10 Companies Were Heavily Sold Down. In this article, we are going to take a look at where D-Wave Quantum Inc. (NYSE:QBTS) stands against other companies that were heavily sold down.

Wall Street’s main indices finished stronger on Tuesday, buoyed by the influx of more corporate earnings results.

The Dow Jones grew by 0.75 percent, the S&P 500 rose by 0.58 percent, and the Nasdaq was up by 0.55 percent.

Despite the wider market optimism, 10 companies managed to register declines, predominantly due to investors exercising caution coupled with companies’ dismal earnings performance during the past quarter.

In this article, we have identified Tuesday’s 10 worst-performing stocks and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

D-Wave Quantum Inc. (NYSE:QBTS)

D-Wave Quantum saw its share prices decline by 5.02 percent on Tuesday to finish at $7 apiece after being targeted by a short seller criticizing its core technology.

In its market report, short seller Kerrisdale Corp. said that D-Wave Quantum Inc.’s (NYSE:QBTS) core technology, quantum annealing, is at a “commercial dead end” that has already been abandoned by the rest of the industry.

It added that the company’s strategy, which emphasizes hybrid solvers for optimization problems, was misleading, saying that it was obscuring the actual mix of classical and quantum computing in its offerings to customers while charging a significant premium for the quantum branding.

D-Wave Quantum Inc. (NYSE:QBTS) has yet to respond to the allegations.

The company, based on its historical reporting dates, is expected to announce the results of its first quarter earnings performance in the second week of May 2025.

Last year, D-Wave Quantum Inc. (NYSE:QBTS) widened its net loss by 74 percent to $143.9 million from $82.7 million in 2023 primarily due to a $68.3-million charge related to the remeasurement of the company’s warrant liability that materially increased as a result of the significant price appreciation of the warrants. Meanwhile, revenues ended flat at $8.8 million.

Overall, QBTS ranks 8th on our list of companies that were heavily sold down. While we acknowledge the potential of QBTS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than QBTS but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.