Shares of D-Wave Quantum Inc (NYSE:QBTS) are trading lower Wednesday afternoon, caught in a broader market downturn. The broader tech sector is facing headwinds from a Reuters report that the United States is considering new restrictions on exports to China involving U.S. software and technology. Here’s what investors need to know.
What To Know: This news is particularly concerning for the tech sector, as it could significantly limit access to the lucrative Chinese market, creating uncertainty for future revenue and growth.
For a company like D-Wave, which operates in the highly specialized and globally competitive field of quantum computing, the prospect of being cut off from a major market is a significant blow to investor confidence.
The downturn comes despite a positive long-term outlook for the quantum computing industry. Last week, JPMorgan Chase announced a multi-billion dollar investment initiative targeting key technology sectors, including quantum computing, as a matter of national security.
This, coupled with ongoing U.S. government support, underscores the strategic importance of the industry. However, for Wednesday, D-Wave’s stock is reflecting the more immediate concerns of market weakness and geopolitical tensions.
Benzinga Edge Rankings: Despite the day’s negative performance, Benzinga Edge data highlights the stock’s exceptionally high Momentum score of 99.87, indicating very strong recent price action relative to its peers.
QBTS Price Action: D-Wave shares were down 16.90% at $26.75 at the time of publication on Wednesday, according to data from Benzinga Pro. The stock is trading within its 52-week range of $0.97 to $46.75.
Wednesday’s significant decline comes after a remarkable performance over the past year of 2,200%, indicating that despite the current pullback, the stock has seen substantial gains over the past months.
From a technical perspective, QBTS is trading approximately 15.1% above its 50-day moving average of $23.99, suggesting that the stock has maintained a bullish trend over the short term.
However, it is also trading 95.7% above its 200-day moving average of $14.11, highlighting the volatility and rapid price appreciation that has characterized the stock’s performance.
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How To Buy QBTS Stock
By now you're likely curious about how to participate in the market for D-Wave Quantum – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
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