News about stock dilution

Shares of D-Wave Quantum (QBTS) fell 35.7% in October 2026, while the S&P 500 slipped 0.9% over the same period. Other quantum computing stocks also dropped sharply: IonQ fell 31.5%, Quantinuum 30.1%, and Rigetti Computing 28.5%. The selloff followed IonQ's agreement to buy cybersecurity firm Elisity for $1.3 billion in stock and its $2 billion equity offering, which raised concerns about dilution as many quantum companies burn cash. D-Wave brought in $12.4 million of revenue over the last four quarters, down 44.2% year over year, while the stock is still worth about $3.9 billion, roughly 316 times sales. The company holds about $500 million in net cash and little debt, so it faces no immediate pressure to raise funds. Its third-quarter results are due November 10, and the stock is down 60.4% year to date and 68.2% below its 52-week high.

The author remains bearish on Plug Power (PLUG), though his view has softened somewhat due to improving financials and a management change, and he still finds buying the stock unlikely for now. Plug grew sales at a 21.3% compound annual growth rate from 2015 through 2025, but its operating cash flow has been negative for a decade. In the first half of 2026, Plug reported negative $244 million in operating cash flow, while Bloom Energy (BE) reported $300 million in operating cash flow. Its outstanding share count rose from over 180 million in March 2016 to about 1.4 billion by February 2026, diluting shareholders. The author says the third-quarter 2026 results could change his view, but argues that without organic cash generation the stock is not a sound investment.

IonQ shares are down 24% over the past month to $30.92 and fell about 4% in the afternoon session. The decline followed two October moves: an all-stock agreement to buy cybersecurity firm Elisity on October 12 and a large equity offering on October 14, which raised dilution concerns. Peers fell more sharply, with D-Wave Quantum down 35% and Rigetti Computing down 31% over the same period, suggesting a broader sell-off in quantum pure plays. The article presents two views: bears argue the extra shares could cap any rebound until Elisity's revenue becomes clear, while bulls see IonQ's relative resilience as a sign of rebound potential. The article says the current evidence does not clearly favor either side.