D-Wave Quantum shares plummeted in January. Is it time to buy?

D-Wave Quantum shares plummeted in January. Is it time to buy?
D-Wave Quantum shares plummeted in January. Is it time to buy?

D-wave quantum (NYSE: QBTS) wants to lead the development of quantum computing with a unique dual-platform approach. The month of January included several steps to achieve that goal.

However, instead of sending the stock higher, D-Wave stock lost 18.9% last month, according to data provided by S&P Global Market Intelligence. That’s why it’s a good time to re-examine the investment thesis.

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Quantum computing could be a powerful game-changer in many areas. It has enormous transformative potential in industries such as pharmaceuticals, materials science, finance and cybersecurity by addressing problems that classical computers cannot solve. 2025 was a year of some progress as quantum sensing technology advanced beyond fundamental research. The emphasis has shifted to the production and implementation of quantum computing processing.

Companies are taking a variety of approaches, letting investors decide which quantum computing stocks, if any, to include in their portfolios. D-Wave was primarily known for its leading quantum annealing system, which is now commercially available. It is an energy-efficient system designed to help businesses accelerate decision-making, optimize operations, and respond to disruptions.

However, last month, the company completed what could be a somewhat transformative acquisition. D-Wave incorporated Quantum Circuits Inc. (QCI). That company creates full-stack superconducting gate model quantum computing systems designed for commercial scalability. The combination gives D-Wave a balance between its commercial annealing quantum systems and a path to developing gate-scale model quantum computers for general-purpose, fault-tolerant computing.

D-Wave didn’t break the bank with the acquisition. The price to acquire QCI was $550 million, consisting of a combination of $300 million in D-Wave shares and $250 million in cash. It may seem like a great buy considering D-Wave only generated about $22 million in revenue through the first nine months of 2025. But that revenue more than tripled compared to the prior-year period, and D-Wave had a cash balance of $836.2 million as of September 30, 2025.

Still, there’s no guarantee the company will achieve enough success to justify its $7 billion-plus valuation, much less grow from there. Only very risk-tolerant investors should own the stock at this early stage. Stocks are going to be volatile, as evidenced by the 19% drop in January.

It’s possible, if not likely, that investors will revalue the company if sales of D-Wave’s quantum annealing system don’t grow fast enough, or if development of its gate model system doesn’t advance significantly this year. Investors should be aware of those possibilities if they want to speculate in the quantum annealing space.

Before you buy shares in D-Wave Quantum, consider this:

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Howard Smith 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.

D-Wave Quantum shares plummeted in January. Is it time to buy? was originally published by The Motley Fool

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