D-Wave Quantum Stock Is Trading Above Its Fundamental Worth, But It's Too Risky To Bet Against It (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

• D-Wave has a notorious track record of missing revenue expectations. Its revenues are also declining YoY.
• The company is unprofitable and cash-burning, but has ample liquidity for 2–3 years due to a recent $175 million equity raise.
• D-Wave is trading at high valuations in an overhyped sector. At a 157x 1-yr forward P/Revenues, I can't make a good argument for being bullish, especially considering weak revenue progress.
• D-Wave is seeing strong technical bullish action on the monthly charts, and it is risky to go against such momentum.
• I am keeping an eye on the growing short interest levels, as that may increase the chances of a final short squeeze before an eventual reversal.

Read the full article here.