D-Wave Quantum Stock Drops Amid $400M Capital Raise

D-Wave Quantum (QBTS) has experienced a significant stock price decline recently, with drops ranging from approximately 3% to over 15% due largely to its announcement of a $400 million at-the-market stock offering aimed at funding acquisitions and capital expenditures. Despite the sell-off, the stock remains up over 1,200% in the past year, reflecting extreme volatility and strong investor interest in quantum computing. Analysts and brokerage firms maintain an optimistic stance, with Roth Capital raising its price target from $12 to $18 and consensus ratings indicating an 'Outperform' status. However, valuation concerns persist, as the stock is considered significantly overvalued relative to its fair value, and there are warning signs such as declining revenue per share and insider selling. The company has demonstrated technological milestones, including quantum supremacy on a real-world problem and growth in hosted services and hardware sales, which bolster its long-term potential amid rising demand for AI and quantum computing solutions. Market caution remains due to the speculative nature of the stock, competitive pressures, and mixed financial indicators.