Rigetti Computing Stock (NASDAQ: RGTI) Experiences Volatile Movement Due to Earnings Report and Analyst Upgrade
Rigetti Computing’s (NASDAQ: RGTI) stock has been on a wild ride in the past day, reflecting the turbulent nature of the quantum computing industry. The stock experienced a significant surge leading up to the previous day’s close, only to plummet by over 10% in after-hours trading before rebounding by as much as 10% during today’s trading session. This erratic movement follows the release of the company’s latest earnings report, leaving investors with conflicting signals.
The breakdown of Rigetti Computing’s Q4 earnings revealed a substantial increase in net losses, amounting to around $153 million, a stark contrast from the $12.6 million loss reported in the same period the previous year. A key contributor to this downturn was $135.1 million in non-cash charges associated with earn-out and derivative warrant liabilities. The company also exceeded anticipated operational losses, reporting an $18.5 million deficit compared to Wall Street’s expected $16 million loss. Revenue figures were equally disappointing, declining to $2.3 million from $3.4 million in the previous year and failing to meet the estimated $2.5 million.
CEO Subodh Kulkarni emphasized that Rigetti is still in the Research and Development phase, with full-scale commercialization not expected for another four to five years. While the company continues to advance its technology, its financial standing indicates a lengthy path to profitability.
In a surprising move, Alliance Global Partners expressed optimism in Rigetti despite its financial setbacks, raising its price target on the stock from $15 to $16 and reaffirming a Buy rating. This adjustment indicates that analysts perceive substantial long-term promise in Rigetti’s quantum computing technology. Despite the stock’s impressive 380% surge over the past year, 2025 has brought challenges, with a 56% drop year-to-date due to broader market forces and investor doubts regarding its commercialization timeline.
Rigetti’s tumultuous performance unfolds against the backdrop of a struggling tech sector. The Nasdaq 100, a key indicator for high-growth technology stocks, has declined by 2.35% in the day, adding further obstacles to quantum computing and other speculative tech investments. The company’s immediate future remains uncertain, with its long-term trajectory contingent on successfully transitioning from R&D to commercialization, forming strategic partnerships, and scaling its quantum computing technology for practical applications. Investors should prepare for ongoing volatility as Rigetti navigates this high-risk, high-reward landscape.