Today, I want to let you in on one of the most exciting tech stocks of the year before it even hits the markets.
Already valued at around $1.6 billion, this future tech leader is set to go public through a special-purpose acquisition company (SPAC) in the second quarter of 2022.
It’s a pioneer in one of the greatest, most powerful innovations of our time: Quantum computing. This kind of computing is light-years ahead of “classical” computing; quantum processors are exponentially more powerful, and will soon be able to solve extremely complex problems in an instant. This is unprecedented computing “firepower” that will enable some of our most powerful (and lucrative) technologies – the Metaverse, artificial intelligence (AI), and robotics, just to name a few – to achieve new heights.
Quantum computing represents a technological breakthrough that could generate an estimated $8 trillion in new wealth.
And the company I’m going to name in a moment is way ahead of the competition with its supercharged quantum computing tech.
Better yet, once this SPAC transaction is finalized, the new access to capital will allow this company to enhance its already leading position as it accelerates quantum use cases in customer segments, logistics, manufacturing, pharmaceuticals, finance, and government.
With so much promise ahead and a chance for you to cash in ahead of its Wall Street debut this summer, now is the perfect time to let you in on the “secret” that makes this company a gamechanger for tech investors like you.
Here’s what you need to know about the newest company on my Future Tech Watchlist…
Why Quantum Computing Matters Now
Classical computers process bits. Bits are binary, they’re tiny pieces of information that can represent ones or zeroes, or on or off, yes or no, true or false, and so on. Quantum computers use qubits, based on the principle of superposition of states that takes the binary “or” out of the question. In other words, a qubit can represent one and zero, or on and off, etc. simultaneously. It’s a new “path” to computing power that gives quantum machines abilities classical computers just don’t have. A problem it might take a sophisticated classical computer a week to solve might be solved by a quantum computer in a second.
Yes – quantum is that fast. Some of the market’s biggest, most powerful players realize the potential in quantum computing and are rushing to achieve breakthroughs as we speak.
What’s more, some 40% of large companies are already using quantum computing in some way to stay ahead of their competition, as it allows them to reduce waste and cut down the time it takes to find a solution.
But I want to tell you about smaller company operating in this space, one with incredible potential ahead.
I’m talking about Vancouver-based D-Wave Systems Inc. Founded in 1999, D-Wave company specializes in “quantum annealing,” a quantum computing principle that’s a little further along in terms of practical, here-and-now applications. This means it uses quantum computing principles and hardware to tackle tasks related to network optimization and probabilistic sampling (or a way to randomly sample a group).
In short, D-Wave allows users to apply their knowledge and quickly send a prototype into production. It provides real-time, full-stack quantum systems that power engineering, post-processing software and chip fabrication. The system is used commonly in logistics and artificial intelligence financial modeling and cybersecurity spaces.
D-Wave also provides a quantum Cloud service, called Leap. This service is available to support research and experimentation while providing privacy, security, and reliability that facilities need.
D-Wave serves plenty of big-name customers, including Volkswagen AG (VWAGY), software firm Accenture PLC (ACN), Lockheed Martin Corp. (LMT), and NASA.
As it is with a lot of companies we talk about, much of D-Wave’s success can be attributed to its leadership – after all, like I always say, great companies have great leaders.
D-Wave Promotes Leadership from Within
The firm’s current CEO, Dr. Alan Baratz, took over in 2020 after spending time as the Executive Vice-President of Research and Development (R&D) and Chief Product Officer. Baratz has experience on the development, delivery, and support of all of D-Wave’s products and applications, plus 25 years of experience in product development and bringing products to market.
Previously, Baratz was the CEO of Versata, Zaplet, NeoPath Networks, and president of JavaSoft at Sun MicroSystems, where he oversaw the growth and adoption of JavaSoft to become a robust platform used by 80% of Fortune 100 companies.
In my view, this experience makes Baratz the perfect person to lead D-Wave.
During the pandemic, Baratz offered free access to the company’s systems to anyone working on the response to COVID-19. Customers and partners shared information and engineering teams to use quantum computing to formulate problems and develop solutions to the pandemic.
The result was Sigma-I, which created real-world practical applications to address problems in hospitals, including nurse and employee scheduling and congestion in commercial facilities.
With quantum computing, customers have built more than 250 early applications in logistics, artificial intelligence, drug discovery, cybersecurity, financial modeling, and others.
In 2021, D-Wave was recognized in the top five for quantum patents along with Alphabet Inc. (GOOGL), IBM Corp. (IBM), Intel Corp. (INTC), and Northrop Grumman Corp. (NOC).
D-Wave’s Roadmap to Success
This company has outlined an impressive roadmap that will benefit enterprises, governments, and developers. It has an arsenal that includes dual-path hardware and cross-platform services, software, and tools that will provide customers with the solutions they need to solve tomorrow’s problems today.
D-Wave has a five-year plan to hit revenue projections. This year, they expect to bring in $11 million in revenue from contracted bookings and a customer base of two-dozen Fortune 200 companies. Since D-Wave has no direct competitor, it expects to be cash-flow positive by 2025.
We’ll be watching D-Wave closely over the coming months, as it’s set to go public through a $340 million SPAC transaction with DPCM Capital Inc. (XPOA). Once the deal is finalized (expected in Q2 2022), D-Wave will trade on the New York Stock Exchange (NYSE) under the symbol QBTS.
A SPAC is essentially like a blank check, where a leadership team gets together to raise money with the goal of identifying an acquisition target to take public. You can invest in a SPAC before it even knows what company it wants to acquire, usually for around $10 a share. The SPAC then has about two years to make an acquisition. Once the acquisition is made, if investors are happy with the deal, there’s a good chance the share price will surge on the announcement – that’s where the big moneymaking opportunity is with SPACs.
In this instance, we know DPCM’s acquisition target is D-Wave; now, we just have to wait for the acquisition to close.
Cheers and good investing,
— Michael A. Robinson
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Source: Strategic Tech Investor