NEW YORK – Shares of D-Wave Quantum Inc. (NASDAQ: QBTS) are capturing significant investor attention in today’s trading session, marked by a sharp price increase and unusually high trading volume. As of 10:19 AM EDT, the stock was trading at 0.58 or 3.89% for the day.
The trading day for QBTS began with a dramatic spike at the market open. The stock, which closed previously at $14.82, gapped up and quickly reached a daily high of $15.78. This initial surge was followed by a rapid pullback, demonstrating significant volatility. However, the stock has since found support and is on an upward trajectory, indicating strong buying interest is still present.
The volume of shares traded is a key indicator of today’s heightened activity. With over 18.9 million shares already traded just an hour into the session, it’s a substantial figure when compared to its average volume of approximately 65.9 million shares. This suggests that a specific catalyst or renewed market interest is fueling the stock’s movement.
Should You Buy or Sell This Stock Today?
Given the high volatility, traders and investors should approach QBTS with a clear strategy.
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For Potential Buyers: The strong upward momentum and high volume can be seen as bullish signals. Traders looking for momentum plays might see the current trend as an opportunity, especially if the stock can break through its intraday high of 0.75 – $19.76), which can also be a sign of strength.
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For Potential Sellers or Cautious Investors: The extreme volatility presents a significant risk. The sharp rejection from the day’s high suggests that there is selling pressure at higher levels. Furthermore, with the stock approaching its 1-year target estimate of 0.66) and lack of a P/E ratio indicate it is not yet profitable, a factor that long-term, value-focused investors would consider.
Our Opinion on This Stock
D-Wave Quantum (QBTS) is currently a high-momentum, speculative stock. Today’s price action is driven by intense market interest, resulting in both significant gains and high risk. The quantum computing sector is forward-looking and carries inherent speculation, which is reflected in the stock’s high Beta of 1.48, indicating it is more volatile than the broader market.
While the short-term trend is positive, the intraday volatility cannot be ignored. The stock’s performance for the rest of the day will likely depend on whether the buying pressure can be sustained to overcome resistance at the session’s highs.
