D-Wave Quantum Inc. (QBTS) shares fell 5.07% in intraday trading on Tuesday, giving back a portion of the previous session's sharp gains as investors reassessed the stock's valuation.

The decline comes just one day after the quantum computing company's stock surged 20.3% on Monday, driven by news that AT&T agreed to expand its partnership with D-Wave. While the deal demonstrated real-world commercial application of quantum annealing technology for network management, a wave of profit-taking set in as questions arose about whether the stock's roughly $7.2 billion market capitalization is justified by its current financial performance.

With D-Wave's second-quarter earnings report due on August 6, investors are looking for evidence that record bookings of $33.4 million are translating into meaningful revenue growth. The company's first-quarter revenue stood at just $2.9 million, and market participants appear to be taking a more cautious stance ahead of the earnings release, despite the positive long-term implications of the AT&T collaboration and the company's strong cash position of $588.4 million.