Why D-Wave Quantum shares are sinking this week
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D-Wave Quantum has announced the provision of a market that could potentially nurture hundreds of millions of new capital.
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Supply may be diluted to shareholders.
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Nvidia CEO Jensen Huang commented on quantum computing this week.
Since last Friday, stocks D-wave quantum (NYSE: QBTS) It fell almost 15% as of the market closure on Thursday. Stock prices also fell on Friday. This week, the Quantum Computing sector experienced some good news, but D-Wave also announced that it would offer market (ATM) stakes to potentially raise new capital.
D-Wave’s ATM offering includes several brokerages and investment banks, allowing the Company to “issuance and sale” of common stock from time to time for up to $400 million. The word issue indicates that new shares may be offered to raise capital. Diluted to existing shareholders.
In its filing with the Securities and Exchange Commission (SEC), D-Wave said that its cash balance as of March 31 was sufficient to “finance our profitability.” D-Wave plans to use potential revenues for general corporate purposes, such as funding for financing expenditures (CAPEX), acquisition of new companies, expanding their business, and general working capital purposes.
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It’s a shame because the news comes in within a week. nvidiaCEO Jensen Huang praised quantum computing. “We are now able to apply quantum computing in areas where we can solve some interesting problems over the next few years,” he said. While few CEOs can move the market, Huang is and is one of the most influential people in the AI (AI) sector. Other quantum computing stocks jumped this week.
Shareholders don’t like diluted capital raises, but this is often when management tries to bring in additional capital to fund growth, as D-Wave transactions are traded at a very high valuation. Either way, it was an incredible run. D-Wave’s shares are up 1,268% from last year and are now trading at 191 times more advanced sales.
It looks like D-Wave is Make real progress It is extremely difficult to buy stocks with these types of meteor ratings, towards a mass-produced quantum computer. At this point, I don’t recommend anything more than a small speculative position.
Consider this before purchasing stock at D-Wave Quantum.