D-Wave Quantum (QBTS 2.90%) stock posted another month of strong gains in July's trading. The company's share price jumped 17.4% in the month. For reference, the S&P 500 index's level rose 2.2% in the month, and the Nasdaq Composite gained 3.7%.
D-Wave stock gained ground last month amid generally bullish momentum for growth stocks and continued excitement surrounding quantum computing plays. The company's share price also got significant boosts from bullish analyst coverage.
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Analyst coverage helped lift D-Wave Quantum stock last month
D-Wave Quantum stock kicked off July's trading on a strong note after Cantor Fitzgerald published a note initiating coverage on the company. The investment firm issued an overweight rating (the equivalent of a buy) on the stock and a one-year price target of $20 per share. The firm's analysts noted that the company's outlook was speculative but also remarked on the potentially explosive levels of demand connected to quantum computing technologies.
B. Riley and Canaccord also weighed in with new coverage on D-Wave last month, with each firm publishing an updated note on the stock on July 23. B. Riley reiterated a buy rating on the stock and raised its price target from $20 per share to $22 per share, and Canaccord initiated coverage on the stock with a buy rating and a price target of $20 per share.
D-Wave Quantum stock has inched higher in August
With the help of some positive coverage from analysts, D-Wave Quantum stock has managed to move higher across August's trading despite some significant swings. As of this writing, the company's share price is up roughly 1% this month. The stock is now up 107% across 2025's trading.
D-Wave reported its second-quarter results on Aug. 7 and saw sell-offs in conjunction with the earnings release. The company posted a non-GAAP (adjusted) loss of $0.08 per share on revenue of $3.1 million in the period. While the company's revenue beat Wall Street's target by roughly $560,000, the company's loss per share came in $0.03 wider than expected.
Despite the larger-than-anticipated loss, Piper Sandler weighed in with bullish coverage on the stock the day after the earnings report. The investment firm maintained an overweight rating on the stock and raised its one-year price target from $13 per share to $22 per share. Piper saw the company's better-than-expected Q2 sales as a bullish indicator and saw encouraging momentum for the company's Advantage2 quantum computing system.
As of this writing, D-Wave Quantum has a market capitalization of roughly $5.4 billion and is valued at approximately 220 times this year's expected sales. While the company's revenue has the potential to begin ramping rapidly in the near term, investors should note that some very strong growth has already been priced into the quantum computing specialist's valuation. Quantum computing has revolutionary potential, but pure-play stocks in the category are high-risk, high-reward investments.
