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Rigetti ComputingRGTIRISKYDec 30, 2024
Stockchase InsightsStock price when the opinion was issued
As of Jun 15, 2026. Market Open.
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One of the leaders in quantum computing. Well positioned, as it has an open platform that other companies can build on. The quantum computing trade surprised a bit to the downside last year on commercial contracts. She trimmed. Looking for a better entry point once she sees momentum in earnings from those contracts.
Much riskier than other names she talks about.
RGTI is going to move only with the quantum sector, as it still has essentially no revenue ($8M expected this year, total). Market cap is more than $8B so expectations are extreme here. Short interest is 14%. There is a big debate on quantum. Some expect it to change the world, but most do not see meaningful revenue for perhaps a decade. A lot can happen in that time, of course. A market correction would see the sector take some giant hits. RGTI has $$440M cash, but cash flow is negative and is expected to be for some time. With its valuation and fundamentals, we cannot give it a general endorsement today.
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Premium contentRigetti Computing is a pioneer in the field of quantum computing, involved in building and deploying full-stack quantum computing solutions. Leveraging their own quantum processors, they aim to accelerate the development of quantum software applications. The company is positioned in a rapidly evolving market and has taken significant strides to gain a competitive edge. Rigetti Computing reported a revenue of 1.8M, which is a 22.4% change from the previous quarter. An increase in revenue typically indicates growing demand for the company's products or services. This positive change in revenue is a good sign, suggesting that the company's sales are moving in the right direction. Social media mentions are up 6% in the past 24h.
Nvidia CEO, Jensen Huang, said that quantum computing has a long way to go, which crushed quantum computing stocks today. This sector got overheated. These stocks have even more downside ahead. They're losing tons of money and have zero or very little revenue. Frothy and excessive. RGTI was $1 just last October. It's not too late to sell.
RGTI is in the quantum computing space so it is getting a lot of attention currently. Revenues are fairly low with $11 mln expected next year compared to the market cap at $2.5 bln. The company is losing money currently. We would view it as high risk and speculative.and we would consider it one to watch only. The quantum computing space is the current 'hot' sector, but commercialization is years awy. RGTI has massive negative cash flow. It does have $80M cash. We would consider it very very risky at this point. If quantum is going to be 'the next big thing' there will be lots of time to buy this. We would like to see higher revenues and cash flow at least getting towards break even. Certainly the stock could still move higher on momentum and speculation, but we cannot justify purchase on any fundamentals.
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