D-Wave Quantum: Finally Some Signs Of Tangible Progress (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Ahead of Q1 FY25, QBTS has early signs of commercialization via a sharp uptick in backlog, R&D progress, and more real-world application to high-impact use cases across various industries.
• D-Wave Quantum's balance sheet strength has also improved, as recent equity raises and improved cash flow conversion have resulted in longer funding runway estimates.
• The Company is trading at a relatively fair value but is still prohibitively expensive on an absolute basis to justify buys. Large pension fund shareholders cutting their stake is a cautionary sign.
• QBTS vs. SPX500 relative technicals suggest continued range-bound price action ahead.
• Despite improved fundamentals and lower valuations, D-Wave Quantum's short interest levels are higher now vs. Jan'25, and getting close to crowded short levels. This increases upside risk via a short squeeze.

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