D-Wave stock price soars double digits as quantum computer shares rally again today. Here's why
Shares in major quantum computer companies were on the rise again in premarket trading on Tuesday, highlighting what has been a volatile couple of weeks for a nascent industry that continues to captivate. Here's what's driving the latest news:
D-Wave announces Advantage2
By far, Palo Alto-based D-Wave Quantum Inc (NYSE: QBTS) is seeing the biggest boost in premarket trading, with its stock up more than 12% as of this writing. This boost follows a 7% increase in D-Wave shares on Monday.
Investors are likely excited by news on Tuesday morning in which D-Wave announced the general availability of its sixth-generation Advantage2 quantum computing system, which the company says has a demonstrated ability to solve deeply complex problems that classical computers can't.
'It's what everybody aspired to achieve, and we're quite excited about it,' CEO Alan Baratz told Fast Company in March, when the company announced that it had achieved 'quantum supremacy' using the Advantage2.
Although some researchers have challenged D-Wave's claims, investors appear to be on board for now. Shares in D-Wave are up 36.84% year to date.
Quantum Computing Inc rises, falls, and rises again
Hoboken-based Quantum Computing Inc. (Nasdaq: QUBT) has seen some volatility since it released its first-quarter 2025 earnings report last Thursday.
The company swung to a profit, reporting net income of $17 million, versus a net loss of $6.4 million last year. Shares surged double digits on Friday after the report, but then fell more than 8% on Monday, possibly due to some profit taking from investors who wanted to lock in their gains.
Now, in premarket trading on Tuesday, QUBT is back on the rise again, with the stock up almost 9% as of this writing. Who can keep up?
Rigetti Computing Inc: Along for the ride?
Shares in Rigetti Computing (Nasdaq: RGTI) were also on the rise in premarket trading Tuesday, up nearly 6% as of this writing.
The Berkeley-based company has not announced any news this morning that would impact the share price, so it's possible that investors are just showing a bit more excitement for the quantum computing space. Experts believe the space has the potential to transform computing as we know it, although debates persist about how far we are from widespread practical uses for quantum computing.
It's worth noting that while all three of the above quantum computing companies are enjoying a rally this week, shares in Quantum Computing Inc. and Rigetti are both down significantly year to date: 36.94% and 39.75% respectively.
Only time will tell if these three stocks will continue on their upward path this week and into the future. For now, enjoy the quantum leap.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 minutes ago
- Yahoo
Is Nvidia stock a massive bargain — or a massive value trap?
AI has transformed demand for computer chips and the most obvious beneficiary of that has been Nvidia (NASDAQ: NVDA). With a stock market capitalization of $3.4trn, Nvidia might not seem like an obvious bargain. But what if it is really worth that much – or potentially a lot more? I have been keen to add some Nvidia stock to my portfolio, but I do not want to overpay. After all, Nvidia has shot up 1,499% in five years! So, here is what I am doing. For some companies in which I have invested in the past, from Reckitt to Burberry, I have benefited as an investor from a market being mature. Sales of detergent or pricy trenchcoats may grow over time, but they are unlikely to shoot up year after year. That is because those firms operate in mature markets. On top of that, as they are large and long-established, it is hard for them to grow by gaining substantial market share. So, market maturity has helped me as an investor because it has made it easier for me to judge what I think the total size of a market for a product or service may be – and how much of it the company in question looks likely to have in future. Chips, by contrast, are different. Even before AI, this was still a fast-growing industry – and AI has added fuel to that fire. On top of that, Nvidia is something of a rarity. It is already a large company and generated $130bn in revenues last year. But it is not mature – rather, it continues to grow at a breathtaking pace. Its first-quarter revenue was 69% higher than in the same three months of last year. Those factors mean that it is hard to tell what Nvidia is worth. Clearly that is not only my opinion: the fact that Nvidia stock is 47% higher than in April suggests that the wider market is wrestling with the same problem. Could it be a value trap? It is possible. For example, chip demand could fall after the surge of recent years and settle down again at a much lower level. A lower cost rival could eat badly into Nvidia's market share. Trade disputes could see sales volumes fall. With a price-to-earnings (P/E) ratio of 46, just a few things like that going wrong could mean today's Nvidia stock price ends up looking like a value trap. On the other hand, think about those first-quarter growth rates. If Nvidia keeps doing as well, let alone better, its earnings could soar. In that case, the prospective P/E ratio based on today's share price could be low and the current share price a long-term bargain. I see multiple possible drivers for such an increase, such as more widespread adoption of AI and Nvidia launching even more advanced proprietary chip designs. So, I reckon the company could turn out to be either a massive bargain at today's price, or a massive value trap. The price does not offer me enough margin of safety for my comfort if the stock is indeed a value trap. So, I will wait for a more attractive valuation before buying. The post Is Nvidia stock a massive bargain — or a massive value trap? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool C Ruane has no position in any of the shares mentioned. The Motley Fool UK has recommended Burberry Group Plc, Nvidia, and Reckitt Benckiser Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Forbes
an hour ago
- Forbes
Is Lululemon's Recent Pullback Your Perfect Entry Point?
CHINA - 2025/04/17: A shopper walks past the Canadian sportswear clothing band Lululemon store. ... More (Photo by Sebastian Ng/SOPA Images/LightRocket via Getty Images) Lululemon stock (NASDAQ:LULU) is currently trading at approximately $331 and seems undervalued based on its strong fundamentals, even though the stock often experiences volatility during turbulent market conditions. The company provided impressive Q1 2025 results, with revenue increasing by 7% to $2.37 billion and EPS rising to $2.60, just surpassing expectations. However, the market concentrated on a weaker-than-anticipated 1% increase in same-store sales and a revised full-year outlook, influenced in part by tariff-related pressures. The consequence? A swift 22% decline in after-hours trading that reflects more about short-term market sentiment than long-term intrinsic value. In spite of its high-performance profile, LULU behaves like a value stock. Lululemon trades at about 18x its trailing earnings (slightly lower than the historical average) and 19x price-to-free cash flow – both figures are beneath the S&P 500's averages—yet it is a company that consistently excels in revenue, margins, and return on capital. In comparison with its main competitor Nike, Lululemon is more affordable across significant profit metrics, with a reduced P/E and a more appealing P/FCF ratio. Investors are essentially acquiring Ferrari performance at Lexus pricing. Moreover, with a $32 billion market cap generating $1.6 billion in trailing free cash flow—a 5% cash flow yield, LULU appears to be more of a long-term wealth builder than a fluctuating apparel brand. For those looking for lower volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative – having outperformed the S&P 500 and yielding returns exceeding 91% since inception. Lululemon continues to showcase its growth capabilities. The company reports an impressive three-year revenue CAGR of 19%, which is more than three times the S&P 500's 5.5%. Over just the past year, it demonstrated 10% revenue growth, increasing annual sales to about $11 billion. Despite encountering macroeconomic challenges, the brand persists as a global growth powerhouse with an expanding international presence and remarkable efficiency. Its operating margin over the last four quarters of 23.7% nearly doubles the S&P 500's 13.2%, while its operating cash flow and net income margins (21.5% and 17.1%, respectively) significantly outperform broader market averages. These figures are not merely good—they're elite. Lululemon's balance sheet resembles a fortress. With a debt-to-equity ratio of just 4.9%, it is significantly below the S&P 500 average of 19.9%. Additionally, its cash-to-assets ratio of 26.1% far exceeds the market's 13.8%. This immaculate financial status provides Lululemon with both strength during downturns and the ability to invest in further growth. There's no way to sugarcoat it: Lululemon has experienced dramatic declines during market corrections. It dropped 46% during the downturn of 2022 (compared to the S&P's 25%), fell 47% in the early 2020 COVID-19 shock (versus 34%), and was extremely affected during the 2008 crash, plummeting 92% (compared to 57%). Investors must recognize that with LULU, strong fundamentals don't necessarily provide protection against sharp changes in sentiment. Our dashboard How Low Can Stocks Go During A Market Crash illustrates how major stocks performed during and after the last six market crashes. Lululemon checks nearly every box: strong growth, solid profitability, and a fortified balance sheet, with the only drawback being its susceptibility during market downturns. Trading at a slight discount relative to its strong performance profile, the recent Q1 results, which included mixed outcomes and cautious guidance, underscore immediate challenges while preserving the integrity of long-term fundamentals. Nonetheless, you could also consider the Trefis Reinforced Value (RV) Portfolio, which has surpassed its all-cap stocks benchmark (a combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to yield strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks offered a responsive strategy to capitalize on positive market conditions while limiting losses during downturns, as detailed in RV Portfolio performance metrics.
Yahoo
2 hours ago
- Yahoo
3 Top Stocks Yielding Over 3% to Buy Right Now for Dividend Income and Upside Potential
Brookfield Infrastructure has increased its high-yielding payout every year since its formation. PepsiCo is an elite dividend stock. Prologis is growing its dividend much faster than the average dividend stock. 10 stocks we like better than PepsiCo › Dividend-paying stocks can be great investments. They can enable you to generate some passive income, providing a real return. In addition, dividend stocks have historically produced strong total returns as they've grown their earnings and shareholder payouts, driving stock price appreciation. Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP), PepsiCo (NASDAQ: PEP), and Prologis (NYSE: PLD) currently stand out among dividend stocks. The trio has excellent records of paying growing dividends. On top of that, they currently offer attractive yields of more than 3%, partly due to drops in their stock prices this year. Because of that, they offer compelling blends of dividend income and upside potential. Shares of Brookfield Infrastructure have declined by nearly 10% from their 52-week high. That slump has pushed the global infrastructure company's dividend yield up to 4.2%. The company's stock price has also slumped, even though it's having another good year, and its funds from operations (FFO) rose 5% in the first quarter, powered by inflation-driven rate increases, recently completed expansion projects, and acquisitions closed in the past year. Brookfield Infrastructure has a terrific record of paying dividends. It has increased its payment in all 16 years since its formation, growing it at a 9% compound annual rate. The company expects to continue increasing its payout in the future, targeting 5% to 9% annual growth. It sees a trio of organic growth drivers (inflation-driven rate increases, volume growth as the global economy expands, and expansion projects), increasing its FFO per share by 6% to 9% per year. On top of that, the company has an excellent record of making accretive acquisitions funded by recycling capital. It recently agreed to invest $500 million in the acquisition of Colonial Enterprises, which owns a leading U.S. refined products pipeline system. It also partnered with GATX Corporation to buy Wells Fargo's rail operating lease portfolio (consisting of 105,000 railcars) for $4.4 billion. It's also acquiring Wells Fargo's rail finance lease portfolio (23,000 railcars and 440 locomotives) in a separate deal. Brookfield estimates that acquisitions like these will help push its FFO growth rate above 10% annually. PepsiCo stock has slumped more than 25% from its 52-week high. That plunge has propelled its dividend yield to 4.4%. That's a tasty level for a company with a long history of satisfying investors' cravings for more dividend income. The food and beverage giant recently increased its dividend payment by another 5%. That extended its growth streak to 53 straight years, enough to qualify PepsiCo as an elite Dividend King. PepsiCo's stock is down due to concerns that tariffs, a slowing economy, and changing consumer tastes will impact the company's growth. On the one hand, the company is seeing some impact from those headwinds this year. It now expects its earnings per share to be at the same level as last year's, compared to the mid-single-digit growth rate it initially expected. However, the company has a resilient business and expects its growth to reaccelerate in the coming years. It has been investing heavily in the strategic transformation of its portfolio to healthier food and beverage options, including buying Poppi, Siete, and Sabra in recent quarters. These investments should pay dividends for the company in the coming years by reigniting its earnings growth engine, which should enable PepsiCo to continue increasing its dividend. Prologis stock has slumped more than 15% this year. That sell-off has helped nudge its dividend yield up to 3.7%. The leading industrial real estate investment trust (REIT) has been under some pressure due to slowing demand for warehouse space. However, the company is still performing well amid all the uncertainty. Its core FFO per share increased 11% in the first quarter as it continues to sign new leases at much higher rates compared to the price point of expiring contracts on the same space. Meanwhile, the long-term demand picture for warehouse space remains robust. "Over the long term, limited new supply and high construction costs support continued rent growth," commented CEO and co-founder Hamid Moghadam in the first-quarter earnings press release. That should enable the company to capture higher rental rates on its existing properties and continue developing new warehouses. In addition, Prologis is using some of its land to build data centers to capitalize on the growing demand for these properties to support increased digitalization and AI technology. Prologis' growth prospects should enable the REIT to continue increasing its dividend. It has grown its payout at a 13% compound annual rate over the past five years. That's faster than the S&P 500 (5%) and REIT sector average (6%). Brookfield Infrastructure, PepsiCo, and Prologis offer investors the best of both worlds. They pay dividends that yield more than double the S&P 500's average (less than 1.5%), and they have compelling upside potential from their earnings growth and an eventual recovery in their stock prices. Because of that, they could produce strong total returns from here, making them great dividend stocks to buy right now. Before you buy stock in PepsiCo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and PepsiCo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Wells Fargo is an advertising partner of Motley Fool Money. Matt DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, PepsiCo, and Prologis. The Motley Fool has positions in and recommends Prologis. The Motley Fool recommends Brookfield Infrastructure Partners and recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy. 3 Top Stocks Yielding Over 3% to Buy Right Now for Dividend Income and Upside Potential was originally published by The Motley Fool
