Investors remain cautious on D-Wave Quantum (QBTS) this week after the NYSE-listed company reported a wider-than-expected loss of $0.08 per share for its second financial quarter. 

On the plus side, however, the quantum-tech specialist reported impressive growth in revenue and a significant increase in cash reserves to about $819 million. 

D-Wave stock has been rather lucrative for investors this year, having delivered some 350% return since its year-to-date low in the second week of January. 

Why Q2 Earnings Bode Well for D-Wave Stock

While profitability remained elusive in the fiscal second quarter, D-Wave’s financial release wasn’t particularly disappointing for long-term investors. 

For starters, the Burnaby-headquartered firm delivered on its commitment to rapid growth with a 42% year-over-year increase in revenue. 

Moreover, a massive sequential increase of 169% in cash on hand confirms QBTS has meaningful runway to support accelerated investments in its quantum platform. 

And yes, on the surface, a widening in its adjusted EBITDA loss to $20 million looks concerning, but investors should note that much of it was attributed to research and development related expenses – a necessary cost of innovation. 

Together, this suggests the pullback in QBTS shares may actually be an opportunity for long-term investors. 

Jim Cramer Favors Owning QBTS Shares

While D-Wave shares have already experienced a meteoric rally in recent months, famed investor Jim Cramer continues to favor owning it for the long term. 

According to the Mad Money host, QBTS is one of the best ways to play the quantum computing space because it’s not speculative, it’s a “real company” with promising technology and long-term clients. 

Growth-focused investors should remain invested in QBTS stock as it could move explosively to the upside on “one little story,” the former hedge fund manager added.  

Cramer’s enthusiasm further adds to the case for buying this quantum computing stock on the post-earnings weakness. 

Wall Street Sees Further Upside in D-Wave Quantum

What’s also worth mentioning is that Wall Street analysts continue to see significant further upside in QBTS shares as well. 

The consensus rating on D-Wave stock currently sits at “Strong Buy” with the mean target of about $20 indicating potential for another 20% upside from here.