Is D-Wave Quantum a Buy? Here's What the Data Says.

D-Wave's bookings rose an impressive 1,120% in the second quarter, but its revenue was flat.

Based on D-Wave's price-to-sales ratio of 496, the stock is far too expensive to justify buying.

Investors hope that quantum computing could be the next big investing trend after artificial intelligence, and one of the most talked-about names among quantum computing stocks right now is D-Wave Quantum (NASDAQ: QBTS) .

The company recently reported its second quarter results, and D-Wave stock immediately nosedived, even after a 1,120% increase in bookings.

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So, is it time to pick up some of the company's shares after the recent decline? The data suggests you should avoid D-Wave stock for now.

D-Wave's Q2 sales were just $3 million, slightly below sales from the year-ago quarter and missing Wall Street's consensus estimate of over $4 million. The company's loss per share of $0.13 improved from a loss of $0.42 in the year-ago quarter but fell short of the consensus estimate of a loss of $0.09.

While narrowing losses are a positive sign, D-Wave's inconsistent revenue growth is part of the reason why it's difficult to invest in the company right now. Its sales are choppy, often coming in cycles as D-Wave gains a new customer. This makes it hard to gauge the company's growth.