Rigetti Computing (RGTI)

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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Up 85% this year, but has fallen recently, including 10% today. They have declining revenues, losing gobs of money. Could sell half of it, if you've ridden this.

Is a spec stock and not his favourite in this space.

Is a meme stock, not trading on fundamentals, which are paltry.

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.

Quantum computing now is in a classic hype cycle. Don't take any options. Take some profits. There's a lot of volatility in this space; these companies are not profitable. But in a few years, you will wish you had got in on the ground floor.

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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Small revenue base, losing a lot of money.