Should You Buy, Sell or Hold QBTS Stock at Its P/S of 90.31X?

Core Viewpoint - D-WAVE QUANTUM (QBTS) shares are currently overvalued, indicated by a Value Score of F, with a forward 12-month price/sales (P/S) ratio of 90.31X, significantly higher than its median of 14.26X and the sector's 6.49X [1][2]. Company Performance - QBTS shares have surged 554.8% in the trailing six months, outperforming the broader Zacks Computer and Technology sector's return of 13.7% and the Internet - Software industry's appreciation of 38.7% [3][4]. - QBTS has outperformed peers like IBM and Alphabet, which gained 33.2% and 14.2% respectively in the same period, attributed to its expanding clientele and influence in quantum computing [5]. Market Dynamics - The global quantum computing market is expected to grow at a CAGR of 20.1% from 2024 to 2030, indicating a robust growth trajectory for the industry [11]. - QBTS' Quantum Computing-as-a-Service revenues grew 41% year over year, totaling $1.6 million in Q3 2024, driven by higher average revenue per customer [7]. Strategic Initiatives - In January, QBTS launched the Leap Quantum LaunchPad program, offering a three-month free trial of its technology to accelerate quantum application deployment [8]. - QBTS has formed partnerships with companies like Carahsoft and Zapata Computing, which have been significant growth drivers, particularly in the public sector [12]. Customer Base and Revenue Growth - QBTS has a diverse customer base of 132 across commercial, government, and research sectors, with a 66$15.42 million, reflecting a 76.22% year-over-year increase [14]. Competitive Landscape - QBTS faces growing competition from companies like Rigetti Computing, IBM, Google, and IonQ, which are advancing in quantum technologies [16]. - Rigetti launched its 84-qubit Ankaa-3 system, enhancing its market position and potentially challenging QBTS [17]. Market Sentiment - Influential tech leaders, including Meta's CEO Mark Zuckerberg, express skepticism about the near-term utility of quantum computing, adding to market uncertainty [18][19]. Conclusion - The stretched valuation and stiff competition are expected to pressure QBTS shares in the near term, with a Zacks Rank 3 (Hold) suggesting a cautious approach for investors [20].