Trump continues to call for U.S. control of Greenland.
Shares of D-Wave Quantum (QBTS 6.21%) dropped on Tuesday, finishing the day down 6.2%. The slide came as the S&P 500 and the Nasdaq Composite both had their worst day in months, falling 2.1% and 2.4%, respectively.
The quantum computing stock got swept up in a broad market rout triggered by escalating geopolitical tensions. President Trump doubled down on his push to acquire Greenland, threatening tariffs on eight allies — including seven EU members and the U.K. — unless they support a U.S. takeover of the Danish territory. When pressed on how far he’d go, Trump responded, “You’ll find out.”
D-Wave does business in Europe
Image source: Getty Images.
While stocks across the board were hit regardless of their ties to Europe, D-Wave has a meaningful European footprint and could be directly impacted by a trade war between the U.S. and the EU. Regardless of the outcome, however, I would still advise investors to stay away from D-Wave and other pure-play quantum companies. While the technology is exciting, it is a long road to real commercialization, and D-Wave is already valued at $10 billion despite generating just $24.14 million in sales over the last 12 months. I think that investors are getting ahead of themselves.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
