Stock-Split Watch: Is D-Wave Quantum Next?

Sun, Sep 14, 2025, 12:00 PM 5 min read

• D-Wave Quantum is part of a small group of companies trying to commercialize quantum computing.

• Companies usually conduct stock splits after a significant move in their stock price, either up or down.

• Stock splits can help companies trade at more comparable per-share levels to peers.

• 10 stocks we like better than D-Wave Quantum ›

In the public markets, companies are always trying to make their stocks more attractive to investors. One way publicly traded companies can do this is through stock splits and reverse stock splits, which are tools that artificially manipulate share price and outstanding share count but don't change the overall value of a company.

While stock splits won't change the performance of a company, they can serve as indicators to the market, which is why investors always seem interested when stock splits are announced. D-Wave Quantum (NYSE: QBTS) is part of the high-flying quantum computing sector, and has seen its stock price fluctuate significantly in recent years. Investors are wondering if a stock split could be on the horizon.

While it can be difficult to predict exactly when a company will conduct a stock split, there are some common reasons they do them. Understand first that a stock split lowers a company's share price and proportionally increases the outstanding share count. Stock splits do not alter the market cap of a company (which is share price multiplied by number of shares) nor an individual investor's equity position.

Let's say an investor held 50 shares of a stock that traded at $30 per share for a total equity position of $1,500. If a company announced a 3-for-1 stock split, the investor would receive three shares for each one they owned, so the number of shares they owned would triple from 50 to 150. The total equity position remains the same, however, as the stock price would decrease to $10 per share in the split.

Stock splits can be useful for companies that have seen their stocks increase significantly. If the per-share price has risen into the hundreds or thousands, management may want to bring the stock price down to be more in line with peers so it feels more attainable for investors. Stock splits can also boost liquidity.

Reverse stock splits increase share price and lower the amount of outstanding shares. Companies can also use these to get their stock price more in line with peers. They are also frequently used if a company is dealing with compliance issues on the New York Stock Exchange or Nasdaq. On both exchanges, companies risk eventual delisting if their stock price falls below $1 per share for 30 consecutive trading days. If a management team thinks they can turn things around and want to stay on one of the largest, most liquid exchanges in the world, then a reverse split can buy them some time.