Rigetti Computing Shares Plunge 60% from All-Time High Amidst Industry Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Fool
- Stock Volatility: Rigetti Computing's shares have plummeted 60% from their all-time high of $56 reached in October, now trading at $1.45, reflecting market concerns over its future profitability and potentially diminishing investor confidence.
- Revenue and Losses: The company's Q3 revenue fell 18% year-over-year to $1.95 billion, while operating losses surged to $20.5 billion, indicating that its substantial R&D expenditures are not being covered by early sales, exacerbating financial strain.
- Uncertain Industry Outlook: Although quantum computing is viewed as a future tech megatrend, industry leaders like Alphabet and IBM estimate that commercially viable quantum computers are still four to five years away, placing Rigetti under significant competitive pressure and technological uncertainty.
- High Valuation Risks: With a price-to-sales ratio of 843, significantly higher than the S&P 500 average of 3.4, Rigetti's stock appears overvalued, suggesting considerable downside potential, prompting investors to carefully assess risk versus reward.
Analyst Views on RGTI
Wall Street analysts forecast RGTI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RGTI is 40.60 USD with a low forecast of 35.00 USD and a high forecast of 51.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 25.010
Low
35.00
Averages
40.60
High
51.00
Current: 25.010
Low
35.00
Averages
40.60
High
51.00
About RGTI
Rigetti Computing, Inc. is a full-stack quantum computing company. The Company operates quantum computers over the cloud and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. The Company’s quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing. It has developed a multi-chip quantum processor for scalable quantum computing systems. Through the Company’s Quantum Computing as a Service (QCaaS) platform, its machines can be integrated into any public, private or hybrid cloud. It is also engaged in the sale of quantum processing units (QPUs) and custom computing components, and development contracts and other services. Its QPUs contain fabricated silicon-based chips featuring superconducting qubits. The Company designs and manufactures its chips in-house at Fab-1, an integrated quantum device manufacturing facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
