TLDR
- Rigetti Computing (RGTI) closed at $11.42, up 0.88% after volatile trading session
- Stock maintains massive 1,040% gain over past year despite recent weakness
- Zacks rates RGTI as a “Sell” with #4 ranking due to earnings estimate revisions
- Company expected to post $0.06 loss per share for current quarter
- Revenue projections show decline of 38.2% for current quarter but 204.8% growth expected next fiscal year
Rigetti Computing closed Tuesday’s trading session at $11.42, gaining $0.10 or 0.88% in what proved to be another volatile day for the quantum computing stock.
The modest daily gain masks the dramatic swings that have characterized RGTI’s recent trading pattern.
The stock opened with a sharp spike before pulling back and trading in a choppy range throughout the session. This volatility reflects the high-risk, high-reward nature typical of emerging technology stocks in the quantum computing space.
Despite the recent turbulence, RGTI’s longer-term performance tells a remarkable story. The stock has delivered an extraordinary 1,040% gain over the past year, turning heads across the investment community. This massive run-up has been accompanied by gains of 71.79% over six months and 10.81% over the past month.
However, the picture becomes more complex when examining shorter timeframes. RGTI has dropped 5.74% over the last five trading days and carries a 29.22% loss year-to-date. This divergence suggests that while the stock experienced a phenomenal recovery throughout 2024, it has faced headwinds in early 2025.
The company’s financial outlook presents mixed signals for investors. Rigetti is expected to report a loss of $0.06 per share for the current quarter, which would represent a 14.3% improvement compared to the same period last year. Over the past 30 days, the consensus estimate has been revised upward by 8.3%.
Current Financial Projections
For the full fiscal year, analysts project a loss of $0.05 per share, marking an 86.1% improvement year-over-year. However, this estimate has been revised downward by 13% over the past month, creating some uncertainty about the company’s near-term prospects.
Looking ahead to the next fiscal year, the consensus estimate calls for a loss of $0.18 per share, representing a 260% deterioration from current expectations. This projection has been adjusted upward by 5.9% over the past month.
Revenue projections paint a challenging picture for the current quarter. Analysts expect $1.91 million in sales, down 38.2% from the same period last year. The full-year revenue estimate of $8.78 million suggests an 18.6% decline from the previous year.
The company’s most recent quarterly results showed revenues of $1.47 million, falling short of the $2.46 million consensus estimate by 40.16%. The earnings per share came in at -$0.08, missing expectations by 60%.
Analyst Sentiment and Valuation Concerns
Research firm Zacks has assigned RGTI a #4 ranking, categorizing it as a “Sell” recommendation. This rating stems from recent changes in earnings estimate revisions and other factors related to the company’s financial projections.
The stock currently trades at a premium to its peers, receiving an “F” grade on Zacks’ Value Style Score. This valuation concern comes despite the company’s position in the emerging quantum computing sector.
Over the last four quarters, Rigetti has exceeded earnings estimates only once and has failed to beat revenue consensus estimates in any of the four most recent reporting periods. This track record has contributed to the cautious analyst sentiment surrounding the stock.
RGTI has been among the most searched stocks on financial platforms, reflecting heightened investor interest in the quantum computing space. The stock’s inclusion in the Internet-Software industry category has seen that sector gain 14.2% over the past month, outpacing RGTI’s 2% decline during the same period.
The next fiscal year revenue projection of $26.76 million represents a projected 204.8% increase, suggesting potential for substantial growth if the company can execute on its business plan.
