Hot Inflation Data Causes Rigetti Stock Plunge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy RGTI?
Source: NASDAQ.COM
- Stock Decline: Quantum computing company Rigetti Computing (NASDAQ: RGTI) saw its shares tumble 6.6% on Friday, primarily due to unexpected high inflation data and a price target cut on rival D-Wave Quantum, indicating market uncertainty regarding its future profitability.
- Inflation Data Impact: The January Producer Price Index (PPI) revealed core wholesale prices surged 0.8%, nearly tripling the economists' forecast of 0.3%, suggesting the Federal Reserve may delay rate cuts, further negatively impacting speculative stocks like Rigetti's.
- Increased Competitive Pressure: Mizuho analysts slashed D-Wave's price target from $46 to $40, intensifying pressure across the quantum computing sector as investors tend to link the fates of these companies, raising concerns about Rigetti's market position.
- Investor Confidence Wanes: Rigetti's current valuation reflects enormous expectations for future success, yet analysts caution that such success is far from guaranteed, advising investors to be cautious until the valuation aligns more closely with reality.
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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: 17.420
Low
30.00
Averages
39.75
High
51.00
Current: 17.420
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 Shares Drop 6.55% Amid Market Decline
- Poor Stock Performance: Rigetti Computing, Inc. (RGTI) closed at $17.42, reflecting a 6.55% drop from the previous day, which lags behind the S&P 500's 0.43% decline, indicating the company's vulnerability amid market fluctuations.
- Weak Monthly Performance: Over the past month, RGTI shares have decreased by 6.1%, failing to keep pace with the Computer and Technology sector's 3.21% loss, which may undermine investor confidence in the company's competitive position.
- Upcoming Earnings Report: Rigetti is set to release its earnings report on March 4, 2026, with an expected EPS of -$0.05, showcasing a 37.5% increase from the same quarter last year, yet the full-year forecast of -$0.68 per share indicates ongoing profitability challenges.
- Analyst Rating Changes: Currently, Rigetti holds a Zacks Rank of #3 (Hold), with no changes in EPS projections over the past 30 days, suggesting a lack of confidence from analysts regarding the company's near-term performance, which could impact stock price movements.
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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.
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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
IonQ's Strong Q4 Results Boost Rigetti's Outlook
- IonQ's Strong Performance: IonQ's Q4 results, released on February 25, revealed an adjusted loss of $0.20 per share on sales of $61.89 million, significantly beating analyst expectations of a $0.23 loss and $40.38 million in revenue, thereby boosting confidence in the quantum computing sector.
- Rigetti's Stock Surge: Despite bearish market trends, Rigetti Computing's stock rose 9.4% over the past week, indicating growing investor optimism in the quantum computing space, which may continue to benefit from the upcoming earnings report.
- Elevated Market Expectations: IonQ's robust performance has raised expectations for Rigetti's quarterly report scheduled for March 4, with investors eager to see if Rigetti can deliver strong results; failure to do so may lead to perceptions of falling behind in the quantum race.
- Future Volatility Risks: With increasing geopolitical uncertainties, Rigetti's stock may face high volatility in the near term, prompting investors to carefully assess the company's long-term potential against short-term risks.
See More
Rigetti Computing Stock Rises 9.4% Amid Market Decline
- Stock Performance: Rigetti Computing's stock rose 9.4% over the past week despite bearish market trends, indicating strong investor confidence in the company's prospects within the quantum computing sector.
- Industry Support: IonQ's fourth-quarter results significantly exceeded analyst expectations, reporting a non-GAAP loss of $0.20 per share on sales of $61.89 million, which bolstered optimism for Rigetti's upcoming earnings report.
- Valuation Boost: IonQ's sales guidance of $225 million to $245 million for the year far surpassed Wall Street's target of $192.6 million, enhancing overall valuations in the quantum computing industry, from which Rigetti benefited.
- Future Outlook: Rigetti is set to report its fourth-quarter results and host an investor conference call on March 4, with heightened expectations for performance; failure to meet these could risk perceptions of falling behind in the quantum race.
See More
Rigetti Computing Stock Surges 9.4% Amid Market Decline
- Strong Stock Performance: Rigetti Computing's share price rose 9.4% over the past week, despite the S&P 500 falling 0.4% and the Nasdaq Composite declining 1%, indicating robust market confidence in its quantum computing prospects.
- Supportive Industry Factors: IonQ's fourth-quarter report exceeded market expectations with a non-GAAP loss of $0.20 per share on sales of $61.89 million, significantly better than the anticipated loss of $0.23 per share and revenue of $40.38 million, thereby enhancing Rigetti's valuation outlook.
- Future Performance Pressure: Rigetti is set to release its fourth-quarter results and host an investor conference call on March 4, with IonQ's strong performance putting pressure on Rigetti to deliver satisfactory results to maintain market confidence.
- Market Volatility Expectations: Given geopolitical uncertainties, Rigetti's stock is likely to experience high volatility in the near term, particularly for growth-dependent tech stocks, which may face pullback risks.
See More
Rigetti Computing Shares Drop 6.55% Amid Market Decline
- Poor Stock Performance: Rigetti Computing, Inc. (RGTI) closed at $17.42, reflecting a 6.55% drop from the previous day, which lags behind the S&P 500's 0.43% decline, indicating the company's vulnerability amid market fluctuations.
- Weak Monthly Performance: Over the past month, RGTI shares have decreased by 6.1%, failing to keep pace with the Computer and Technology sector's 3.21% loss, which may undermine investor confidence in the company's competitive position.
- Upcoming Earnings Report: Rigetti is set to release its earnings report on March 4, 2026, with an expected EPS of -$0.05, showcasing a 37.5% increase from the same quarter last year, yet the full-year forecast of -$0.68 per share indicates ongoing profitability challenges.
- Analyst Rating Changes: Currently, Rigetti holds a Zacks Rank of #3 (Hold), with no changes in EPS projections over the past 30 days, suggesting a lack of confidence from analysts regarding the company's near-term performance, which could impact stock price movements.
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
IonQ's Strong Q4 Results Boost Rigetti's Outlook
- IonQ's Strong Performance: IonQ's Q4 results, released on February 25, revealed an adjusted loss of $0.20 per share on sales of $61.89 million, significantly beating analyst expectations of a $0.23 loss and $40.38 million in revenue, thereby boosting confidence in the quantum computing sector.
- Rigetti's Stock Surge: Despite bearish market trends, Rigetti Computing's stock rose 9.4% over the past week, indicating growing investor optimism in the quantum computing space, which may continue to benefit from the upcoming earnings report.
- Elevated Market Expectations: IonQ's robust performance has raised expectations for Rigetti's quarterly report scheduled for March 4, with investors eager to see if Rigetti can deliver strong results; failure to do so may lead to perceptions of falling behind in the quantum race.
- Future Volatility Risks: With increasing geopolitical uncertainties, Rigetti's stock may face high volatility in the near term, prompting investors to carefully assess the company's long-term potential against short-term risks.
See More
Rigetti Computing Stock Rises 9.4% Amid Market Decline
- Stock Performance: Rigetti Computing's stock rose 9.4% over the past week despite bearish market trends, indicating strong investor confidence in the company's prospects within the quantum computing sector.
- Industry Support: IonQ's fourth-quarter results significantly exceeded analyst expectations, reporting a non-GAAP loss of $0.20 per share on sales of $61.89 million, which bolstered optimism for Rigetti's upcoming earnings report.
- Valuation Boost: IonQ's sales guidance of $225 million to $245 million for the year far surpassed Wall Street's target of $192.6 million, enhancing overall valuations in the quantum computing industry, from which Rigetti benefited.
- Future Outlook: Rigetti is set to report its fourth-quarter results and host an investor conference call on March 4, with heightened expectations for performance; failure to meet these could risk perceptions of falling behind in the quantum race.
See More
Rigetti Computing Stock Surges 9.4% Amid Market Decline
- Strong Stock Performance: Rigetti Computing's share price rose 9.4% over the past week, despite the S&P 500 falling 0.4% and the Nasdaq Composite declining 1%, indicating robust market confidence in its quantum computing prospects.
- Supportive Industry Factors: IonQ's fourth-quarter report exceeded market expectations with a non-GAAP loss of $0.20 per share on sales of $61.89 million, significantly better than the anticipated loss of $0.23 per share and revenue of $40.38 million, thereby enhancing Rigetti's valuation outlook.
- Future Performance Pressure: Rigetti is set to release its fourth-quarter results and host an investor conference call on March 4, with IonQ's strong performance putting pressure on Rigetti to deliver satisfactory results to maintain market confidence.
- Market Volatility Expectations: Given geopolitical uncertainties, Rigetti's stock is likely to experience high volatility in the near term, particularly for growth-dependent tech stocks, which may face pullback risks.
See More
