Analysis & Outlook: A Reality Assessment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9 hours ago
0mins
Should l Buy RGTI?
Source: Barron's
- Market Reaction: Stocks opened significantly lower, indicating a shift away from the previous "ignore geopolitics" mindset.
- Recovery Trend: By late morning, there was a noticeable recovery in stock prices, suggesting some stabilization in the market.
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Analyst Views on RGTI
Wall Street analysts forecast RGTI stock price to rise
10 Analyst Rating
7 Buy
3 Hold
0 Sell
Moderate Buy
Current: 17.690
Low
30.00
Averages
39.75
High
51.00
Current: 17.690
Low
30.00
Averages
39.75
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.
Rigetti Computing Q4 Earnings Preview: Loss Expected
- Earnings Preview: Rigetti Computing is set to report its Q4 results on Wednesday after market close, with Wall Street expecting a loss of $0.03 per share on revenues of $2.33 million, indicating a modest year-over-year growth of approximately 2.6% in revenue.
- Technology Roadmap: Management has outlined a technology roadmap aiming for a 1,000-plus qubit system by 2027, which, despite near-term challenges, reflects the company's long-term strategic vision in the quantum computing sector.
- Collaboration Progress: Rigetti announced support for NVIDIA's NVQLink quantum-AI platform and showcased this collaboration at NVIDIA's GTC event, indicating the company's intent to strengthen partnerships in quantum technology, even as market volatility persists due to government-related news and analyst ratings.
- Financial Position: Despite a 10% decline in stock price over the past month and a roughly 24.2% drop year-to-date, the company maintains a strong balance sheet with $450 million in cash and low debt, while an $8.4 million purchase order from India is seen as a potential revenue growth opportunity.
See More
Analysis & Outlook: A Reality Assessment
- Market Reaction: Stocks opened significantly lower, indicating a shift away from the previous "ignore geopolitics" mindset.
- Recovery Trend: By late morning, there was a noticeable recovery in stock prices, suggesting some stabilization in the market.
See More
Quantum Stocks Face Increased Short Selling Pressure
- Increased Short Selling: According to Benzinga's Short Interest Report, IonQ's short interest rose from 79.28 million to 82.81 million shares, representing 23.31% of its float, indicating growing pessimism about its future performance in the market.
- Rigetti's Earnings Outlook: Rigetti is set to release its fourth-quarter earnings, with analysts estimating a loss of four cents per share; despite beating expectations in the previous quarter with a loss of three cents, its revenue of $1.95 million fell short of the $2.26 million estimate, highlighting ongoing profitability pressures.
- IonQ's Strong Performance: IonQ's fourth-quarter earnings report revealed a revenue of $61.9 million, a staggering 429% year-over-year increase, with a loss of 20 cents per share, significantly better than the expected loss of 48 cents, showcasing its robust growth potential in the quantum computing sector.
- D-Wave's Continued Decline: D-Wave has faced pressure after missing EPS estimates for three consecutive quarters, with its latest report showing a loss of nine cents per share and revenue of $2.75 million, falling short of the $3.90 million consensus, reflecting a weakening competitive position in the market.
See More
Quantum Computing Shares Surge Following Earnings Announcement: Key Insights.
- Earnings Report Overview: The latest earnings report from Quantum Computing has raised more questions than it provided answers.
- Stock Performance: Despite the uncertainties highlighted in the report, the company's stock experienced a gain.
See More
Major Retailers Continue Earnings Season This Week
- AST SpaceMobile Earnings Outlook: AST SpaceMobile, Inc. (NASDAQ:ASTS) is set to report its Q4 results after Monday's close, with Wall Street anticipating a loss of 16 cents per share on revenue of $41.11 million, indicating competitive pressures in the market.
- CrowdStrike Growth Target: CrowdStrike Holdings, Inc. (NASDAQ:CRWD) will release its earnings after Tuesday's close, with investors keen to see if it can achieve at least 50% year-over-year growth in net new ARR, confirming its 20% growth trajectory and justifying its premium valuation.
- Broadcom Earnings Focus: Broadcom Inc. (NASDAQ:AVGO) is expected to report its Q1 results on Wednesday afternoon, with analysts forecasting EPS of $2.02 on revenue of $19.14 billion, while investors will be watching if AI semiconductor revenue doubles to $8.2 billion.
- JD.com Earnings Preview: JD.com, Inc. (NASDAQ:JD) is expected to release its results before Thursday's open, with Wall Street predicting a loss of 3 cents per share and revenue of $50.22 billion, reflecting the challenges and opportunities in the Chinese e-commerce market.
See More
Comparing Quantum Computing Stocks: Rigetti vs. D-Wave
- Business Model Differences: Rigetti focuses on building quantum computing systems and selling access, with a 2023 revenue of $7.5 million reflecting its challenges in the R&D phase, while D-Wave has opted for earlier commercialization, offering hybrid systems that combine quantum and classical computing, achieving a 2023 revenue of $24.1 million with relatively stable income.
- Financial Comparison: Rigetti's free cash flow stands at -$67.6 million with cash and equivalents of $447 million, indicating significant funding pressure; in contrast, D-Wave's free cash flow is -$54.8 million with cash and equivalents of $836.2 million, providing a longer runway before needing additional capital.
- Market Outlook Assessment: Although Rigetti is considered to have greater long-term potential, Morningstar's analysis suggests that true commercial quantum computing could be 5 to 10 years away, with general-use quantum computing potentially 20 years off, highlighting the industry's uncertainty.
- Investment Recommendation: Given the substantial funding pressures and uncertainties both companies face, along with their multi-billion dollar market capitalizations, investing in either stock is not advisable at this time; instead, consider companies like Alphabet, which has the financial resources to support quantum R&D indefinitely.
See More
Rigetti Computing Q4 Earnings Preview: Loss Expected
- Earnings Preview: Rigetti Computing is set to report its Q4 results on Wednesday after market close, with Wall Street expecting a loss of $0.03 per share on revenues of $2.33 million, indicating a modest year-over-year growth of approximately 2.6% in revenue.
- Technology Roadmap: Management has outlined a technology roadmap aiming for a 1,000-plus qubit system by 2027, which, despite near-term challenges, reflects the company's long-term strategic vision in the quantum computing sector.
- Collaboration Progress: Rigetti announced support for NVIDIA's NVQLink quantum-AI platform and showcased this collaboration at NVIDIA's GTC event, indicating the company's intent to strengthen partnerships in quantum technology, even as market volatility persists due to government-related news and analyst ratings.
- Financial Position: Despite a 10% decline in stock price over the past month and a roughly 24.2% drop year-to-date, the company maintains a strong balance sheet with $450 million in cash and low debt, while an $8.4 million purchase order from India is seen as a potential revenue growth opportunity.
See More
Analysis & Outlook: A Reality Assessment
- Market Reaction: Stocks opened significantly lower, indicating a shift away from the previous "ignore geopolitics" mindset.
- Recovery Trend: By late morning, there was a noticeable recovery in stock prices, suggesting some stabilization in the market.
See More
Quantum Stocks Face Increased Short Selling Pressure
- Increased Short Selling: According to Benzinga's Short Interest Report, IonQ's short interest rose from 79.28 million to 82.81 million shares, representing 23.31% of its float, indicating growing pessimism about its future performance in the market.
- Rigetti's Earnings Outlook: Rigetti is set to release its fourth-quarter earnings, with analysts estimating a loss of four cents per share; despite beating expectations in the previous quarter with a loss of three cents, its revenue of $1.95 million fell short of the $2.26 million estimate, highlighting ongoing profitability pressures.
- IonQ's Strong Performance: IonQ's fourth-quarter earnings report revealed a revenue of $61.9 million, a staggering 429% year-over-year increase, with a loss of 20 cents per share, significantly better than the expected loss of 48 cents, showcasing its robust growth potential in the quantum computing sector.
- D-Wave's Continued Decline: D-Wave has faced pressure after missing EPS estimates for three consecutive quarters, with its latest report showing a loss of nine cents per share and revenue of $2.75 million, falling short of the $3.90 million consensus, reflecting a weakening competitive position in the market.
See More
Quantum Computing Shares Surge Following Earnings Announcement: Key Insights.
- Earnings Report Overview: The latest earnings report from Quantum Computing has raised more questions than it provided answers.
- Stock Performance: Despite the uncertainties highlighted in the report, the company's stock experienced a gain.
See More
Major Retailers Continue Earnings Season This Week
- AST SpaceMobile Earnings Outlook: AST SpaceMobile, Inc. (NASDAQ:ASTS) is set to report its Q4 results after Monday's close, with Wall Street anticipating a loss of 16 cents per share on revenue of $41.11 million, indicating competitive pressures in the market.
- CrowdStrike Growth Target: CrowdStrike Holdings, Inc. (NASDAQ:CRWD) will release its earnings after Tuesday's close, with investors keen to see if it can achieve at least 50% year-over-year growth in net new ARR, confirming its 20% growth trajectory and justifying its premium valuation.
- Broadcom Earnings Focus: Broadcom Inc. (NASDAQ:AVGO) is expected to report its Q1 results on Wednesday afternoon, with analysts forecasting EPS of $2.02 on revenue of $19.14 billion, while investors will be watching if AI semiconductor revenue doubles to $8.2 billion.
- JD.com Earnings Preview: JD.com, Inc. (NASDAQ:JD) is expected to release its results before Thursday's open, with Wall Street predicting a loss of 3 cents per share and revenue of $50.22 billion, reflecting the challenges and opportunities in the Chinese e-commerce market.
See More
Comparing Quantum Computing Stocks: Rigetti vs. D-Wave
- Business Model Differences: Rigetti focuses on building quantum computing systems and selling access, with a 2023 revenue of $7.5 million reflecting its challenges in the R&D phase, while D-Wave has opted for earlier commercialization, offering hybrid systems that combine quantum and classical computing, achieving a 2023 revenue of $24.1 million with relatively stable income.
- Financial Comparison: Rigetti's free cash flow stands at -$67.6 million with cash and equivalents of $447 million, indicating significant funding pressure; in contrast, D-Wave's free cash flow is -$54.8 million with cash and equivalents of $836.2 million, providing a longer runway before needing additional capital.
- Market Outlook Assessment: Although Rigetti is considered to have greater long-term potential, Morningstar's analysis suggests that true commercial quantum computing could be 5 to 10 years away, with general-use quantum computing potentially 20 years off, highlighting the industry's uncertainty.
- Investment Recommendation: Given the substantial funding pressures and uncertainties both companies face, along with their multi-billion dollar market capitalizations, investing in either stock is not advisable at this time; instead, consider companies like Alphabet, which has the financial resources to support quantum R&D indefinitely.
See More
