D-Wave Quantum (QBTS) stock rallied nearly 60% on Thursday, May 8 after the Canada-headquartered firm reported an exciting 500% year-over-year increase in its revenue to a record $15 million in Q1. 

Investors are cheering QBTS shares also because the quantum technology company narrowed its quarterly loss rather significantly to $5.4 million from a much higher $17.3 million a year ago. 

Including today’s gain, D-Wave Quantum shares are up more than 180% versus their year-to-date low.

D-Wave Quantum Stock Remains a Risky Investment

While a more than 500% year-over-year growth in revenue does sound appealing, there are several reasons to remain cautious on D-Wave Quantum stock in 2025. 

For starters, its massive revenue growth is yet to translate into profitability. A $5.4 million quarterly loss remains concerning relative to the company’s overall top-line. 

Plus, without organic profits, the quantum stock remains entirely dependent on external funding. 

In light of these concerns, an alarmingly high price-sales multiple of about 238x on QBTS shares at writing signals material risk, especially now that fears of a potential recession are brewing again.

Commercial Viability of Quantum Tech Hangs in the Balance

QBTS shares may be a high-risk investment in 2025 as quantum computing is still in its early stages. 

And while the NYSE-listed firm has demonstrated quantum supremacy already, practical utility of its technology remains limited. Investors could, therefore, question whether D-Wave Quantum can translate its breakthroughs into sustainable revenue. 

Finally, the Canadian company faces competition from its U.S. pure-play rivals, including IonQ (IONQ) and Rigetti Computing (RGTI). 

Even tech titans like International Business Machines (IBM) and Google (GOOGL) are investing heavily in quantum computing technology as well, which may further lower interest in D-Wave Quantum stock this year. 

Is It Too Late to Invest in QBTS Shares?

All in all, D-Wave Quantum shares may have gone a bit too far after the company’s Q1 earnings on Thursday, which is evidenced in the Wall Street’s view on QBTS shares. 

While the consensus rating on D-Wave currently sits at “Strong Buy,” the mean target of $9.58 warns of potential downside of 8% from here.