D-Wave Quantum stock drops as much as 36% in October amid sector retreat

D-Wave Quantum had a rough October. Estimates of the decline in its shares for the month range from 31% to 36%, which works out to roughly a third of the company’s market value gone in four weeks.

The odd part is that D-Wave itself was mostly a bystander. As The Motley Fool framed it, the company didn’t do anything wrong, exactly. It simply happened to be standing in a sector where everyone headed for the exits at once.

A sector-wide stampede

D-Wave (NASDAQ: QBTS) had plenty of company on the way down. IonQ shares fell somewhere between 20% and 32% over the same stretch. Rigetti Computing slipped between 26% and 28%.

The first came from IonQ. The company announced a $2 billion equity offering alongside an all-stock acquisition of Elisity. Both moves create new shares, and new shares shrink the slice of the company each existing investor owns.

The second hit was aimed squarely at D-Wave. A securities class-action lawsuit was filed against the company during the month.

The third factor was macro. Rising Treasury yields weighed on speculative technology names broadly. Disappointing quarterly results from established firms such as Alphabet added to the gloom around tech.

The numbers behind the valuation question

D-Wave’s fundamentals help explain why the stock fell so hard once sentiment turned. The company reported second-quarter 2026 revenue of approximately $3.1 million. That figure was flat compared with the same quarter a year earlier.

Over the trailing twelve months, revenue came to roughly $12.4 million.

Yet the stock still trades at about 68 times or more its forward sales.

By the end of October, D-Wave shares had touched a new 52-week low somewhere between $10.23 and $10.65. Year-to-date through late October, the stock was down about 55% to 60%.

What this means for quantum investors

For D-Wave specifically, the next earnings report carries extra weight. A forward sales multiple of 68 or more leaves little room for another flat quarter.

The class-action lawsuit is another overhang to monitor.

IonQ’s $2 billion offering and all-stock deal set a visible example of how quantum companies may fund themselves. If peers follow a similar path, per-share value could come under further pressure even if the businesses themselves grow.

D-Wave, with roughly $12.4 million in trailing revenue and a stock down more than half this year, has some convincing to do.