D-Wave Quantum Inc. (QBTS) saw its stock plummet by 5.07% in pre-market trading on Friday, despite a series of positive analyst updates and strong Q3 earnings. This unexpected drop highlights the complex landscape of the quantum computing industry and investor sentiment towards its long-term prospects.

The company recently reported strong Q3 2025 growth, prompting several analysts to raise their target prices. Stifel increased its target from $26 to $35, Piper Sandler from $22 to $35, and Rosenblatt Securities from $30 to $40. These upgrades typically signal confidence in a company's future performance, making the stock's decline particularly noteworthy.

However, a recent Wall Street Journal article sheds light on the challenges facing the quantum computing industry, which may be influencing investor caution. While the sector has seen renewed attention due to recent technological advances and potential government involvement, the article emphasizes that "the industry has a way to go before the rewards for investors outweigh some glaring risks." Key issues include the need for larger, more error-free quantum computers and uncertainty about which technical approach will ultimately prevail. As analyst Wamsi Mohan noted, "Scalability is the primary question as you look from now to the next five years or the end of the decade." This long-term uncertainty, coupled with the stock's recent strong performance (having more than quadrupled in the past six months), may be prompting some investors to take profits despite the positive short-term indicators.