Shares of the quantum computing company D-Wave Quantum (NASDAQ: QBTS) plunged last month as investors grew increasingly skeptical that big bets in the tech sector would pay off, including artificial intelligence and quantum computing.
Shares of D-Wave fell 24.6% in July, according to data provided by S&P Global Market Intelligence
And if the recent sell-off is any indication, D-Wave’s shares could remain volatile for a while. Investors are concerned about spending Tech investors have been increasingly worried that all of the spending that’s happening in the sector won’t be worth the cost. One of the best examples of this came last month, when Alphabet reported its second-quarter results, saying that capital expenditures would rise to $205 billion this year and would likely be higher next year.
The spending sent Alphabet’s free cash flow into negative territory for the first time in more than two decades. Alphabet’s stock fell after the company released its quarterly results, as investors lost faith that the company’s bets in AI are worth the cost. And while D-Wave isn’t an AI company, its shares suffered the same fate in July because investors took a similar view that D-Wave’s bets on quantum computing won’t pay off.