Quantum computing stocks experienced a sharp reversal on Wednesday, erasing most of the gains from a Tuesday rally that was fueled by softer-than-expected U.S. inflation data. D-Wave Quantum (QBTS) dropped 3.5%, hitting an intraday low of $17.87 before closing at $18.28, while IonQ (IONQ) fell 4.9%, touching $36.86. The selloff was broad-based, with Rigetti Computing sliding 5.3% and other names like Quantum Computing Inc., Arqit, and Xanadu also finishing lower.
The decline came despite a rising broader market and no company-specific negative catalysts. Analysts attributed the move to profit-taking after Tuesday's inflation-driven bounce. Quantum stocks are highly sensitive to interest rate expectations because their valuations are built on future earnings that are still years away; when rate-cut optimism fades, selling pressure quickly follows.
D-Wave's recent financials have added to the unease. The company reported quarterly revenue of just $2.86 million, missing estimates by a wide margin and marking an 80.9% year-over-year decline. Meanwhile, insider selling has attracted attention: CEO Alan Baratz sold over 687,000 shares in June for roughly $18 million, and total insider sales reached 1.36 million shares over three months. IonQ, however, posted impressive revenue growth of 754.7% in its latest quarter, though it still delivered a wider-than-expected loss per share.
Despite the pullback, Wall Street remains constructive. Fourteen analysts maintain a Buy rating on QBTS with an average price target of $36.80, while IonQ's consensus target stands at $69.88. Still, the sector remains under pressure year-to-date, with many quantum names trading well below their 50-day moving averages.
