A D-Wave 2X quantum computer is pictured at the Quantum Artificial Intelligence Laboratory at NASA Ames Research Center in Mountain View, Calif., in December, 2015.Stocks in speculative quantum-computer developers have been on a wild ride of late – and both Canadian-founded D-Wave Quantum Inc. and some investors have taken advantage of the frenzy.
“We believe this funding substantially improves the company’s financial strength” and positions it to execute on product development and commercialization plans, CEO Alan Baratz said in a release last week. Others haven’t been so lucky. Long-time investor 180 Degree Capital Corp., of Montclair, N.J., sold its last 650,000 shares in the quarter ended Sept 30 for 98 US cents, according to a regulatory filing. It lost nearly US$500,000 on its total investment. If 180 had waited a few months it would have booked a profit. Dave Barr, CEO of Vancouver’s PenderFund Capital Management, said his company sold all holdings it managed for a loss at about US$1 a share in 2023 after a post-IPO lockup lifted.
D-Wave got to market first by developing a limited but practical version of a quantum computer that can perform calculations over the internet to support such tasks as financial modelling, material simulation and work-force scheduling. By the end of November, D-Wave stock topped US$3 a share. It has gyrated wildly this week. On Monday, it soared, increasing by nearly 45 per cent. Then on Wednesday, it touched an intra-day high of US$10.50. On Thursday, it slumped by 29 per cent to close at US6.37. That still leaves the stock up 27 per cent on the week and up more than six-fold in the past two months.