Jim Cramer Was Happy The Market “Cared” About D-Wave Quantum – But Not How You Think

Jim Cramer expressed his happiness that the market was paying attention to D-Wave Quantum Inc. (NYSE:QBTS), but it was not for the reasons he initially thought. The stock of the quantum computing company has seen a 24% increase over the past year, yet has remained down 9% year-to-date. Cramer has frequently discussed the company, emphasizing the importance of evaluating its business model.

However, after the firm's second quarter earnings report on August 6th, which saw shares close 9% lower, Cramer began to question whether the market was becoming more realistic about the company's prospects. He noted that unlike with other companies, there seemed to be a growing sense of realism regarding D-Wave Quantum's performance.

The company's earnings report revealed several positive figures, such as a surge in bookings for the first half of 2026, up 1,120% to $35.5 million, driven by agreements with Florida University and a Fortune 100 company. Additionally, 62% of the company's second quarter revenue came from commercial customers. Furthermore, the firm saw a 668% increase in remaining performance obligations (RPOs).

These factors provided solid grounds for future growth. However, D-Wave Quantum's second quarter revenue declined by 0.6% annually, following a 81% drop in Q1 revenue to $2.9 million. This decline was attributed to changes in revenue recognition procedures. Moreover, operational, R&D, acquisition, and other expenses have widened the firm's EBITDA loss to $37 million, more than double the $20 million loss from the previous year.

This has also led to an increase in first half operating expenses to $111.5 million, more than double the $53.6 million spent a year ago. The lack of revenue growth suggests that the surge in bookings is not translating into sales. Consequently, aggressive future spending without sufficient bookings conversion could present challenges.

In terms of valuation, D-Wave Quantum's price to sales ratio is quite high at 610.97, leaving little room for disappointment. However, this high value is somewhat typical in the industry, with companies like Rigetti having P/S ratios as low as 465. The short interest in D-Wave Quantum, at 19.98% as of July, is also high, compared to 19% for Rigetti.

Hedge fund interest in D-Wave Quantum has grown, with 26 funds holding a stake in Q1 2026, up from 22 in Q4 2025. While Insider Monkey acknowledges the risks associated with investing in D-Wave Quantum, the network believes that AI stocks generally offer higher potential returns with limited downside risk. For those seeking higher upside potential, the network recommends checking out a different AI stock with 100x potential.