D-Wave Stock Rises After $175M Equity Raise, Positive Analyst Action: Retail Upbeat
By Stocktwits Inc | First Published Dec 12, 2024, 10:26 PM ISTMKM Roth said D-Wave will have a healthy funding position relative to the expected near-term cash burn following its recent capital raise.
D-Wave Quantum, Inc. ($QBTS) shares are rallying on Thursday after the Palo Alto, California-based company announced that it has successfully raised $175 million in gross proceeds through two “at-the-market” (ATM) equity offerings.
The company said it completed the previously disclosed $100 million and $75 million ATM programs, with the latter, implemented on Dec. 9, completed at a volume-weighted average price of $4.819.
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D-Wave, a provider of quantum computing systems, software, and services, expects to end the fiscal year 2024 with at least $160 million in cash.
The funds will be used for working capital and capital expenditures to support the company’s ongoing technical development efforts and business operations.
Alan Baratz, CEO of D-Wave, said the company’s 5,000 qubit Advantage Quantum Computer is helping drive increased commercial adoption of quantum computing.
“We believe this funding substantially improves the company’s financial strength, positioning D-Wave for the future and enabling us to fully execute against our product and go-to-market strategies and roadmaps,” he said.
The stock also benefited from a positive analyst action. Roth MKM upped the price target for D-Wave stock from $3 to $7 and maintained a ‘Buy’ rating, TheFly reported.
The brokerage attributed the raise to its conviction that the company will have a healthy funding position relative to the expected near-term cash burn.
Quantum computing recently received an impetus after Alphabet, Inc.’s ($GOOGL) ($GOOG) Google announced its latest quantum chip, Willow. The search giant said the chip can reduce errors exponentially and perform a standard benchmark computation in under five minutes, which would take today’s fastest supercomputers about 10 septillion years.
On Stocktwits, sentiment toward D-Wave stock stayed ‘bullish’ (60/100) and message volume stayed at ‘high’ levels.
A Stocktwits user said D-Wave is a trailblazer in quantum computing and will unlikely be threatened by competition.
At last check, D-Wave shares were seen up 0.73% at $4.15, with the upside accompanied by above-average volume. The stock has traded in the $4.03-$4.63 range.
For the year, the stock has gained about 370%.
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