Stock Track | Rigetti Computing Plummets 5.08% on Wall Street Skepticism over Quantum Computing Hype

Stock Track01-22 23:10

Rigetti Computing's stock plummeted by 5.08% on Wednesday, as Wall Street analysts and investors expressed concerns over the unsustainable hype surrounding quantum computing stocks.

The quantum computing company, which develops superconducting quantum processors and related services, had seen its shares surge by over 800% in the past six months, fueled by speculation that its technology could revolutionize industries like artificial intelligence and drug development.

However, a report by Needham analyst Quinn Bolton poured cold water on the rally, setting a price target of $2 for Rigetti Computing, implying a potential 80% decline from its recent highs. Bolton cited several reasons for the cautious outlook:

First, history has shown that next-big-thing investments often experience bubble-bursting events as lofty expectations fail to materialize in the short term. Quantum computing, despite its promising potential, is still in its early stages and faces challenges in scalability and mainstream adoption.

Second, Rigetti Computing and its peers have yet to demonstrate sustainable operating models, with ongoing net losses and significant cash burn. The company lost $48 million in the first nine months of 2024 and saw its cash burn from operations increase year-over-year.

Bolton's bearish stance echoed concerns raised by CNBC's Jim Cramer, who warned investors against getting overexposed to the "froth" in quantum computing stocks, labeling them as "the worst of the excess."

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Comments

  • syzuhair
    01-23 10:07
    syzuhair
    Agreed. Same happening with Qubt. i got rug pulled
  • hphoa
    01-23 09:29
    hphoa
    to be fearful when others are greedy and to be greedy only when others are fearful.”remember  what Warren buffet said...
  • Guavaxf30
    01-23 08:11
    Guavaxf30
    One day it's panic buying. Less than 24 hurs later, the reverse happens and people are now crying wolf.  People, don't be fooled. There is heavy manipulation going on and you are being conned. Just do it the Warren Buffet way. Look at value investing. For me, Quantum Computing is way too early to buy into. Someone like Huang will not want to risk his reputation and say 15-20 years unless he is very very convinced by that.  Having time to digest what he said about Nividia investing resources to look into Quantum two days after he said it was 15-20 years, he is not contradicting. Nvidia has got billions of excess funds. They can afford to hedge their bet by staking a few millions to look into Quantum and see what happens in 15-20 years. We are different. We do not have billions of
    • Guavaxf30Replysyzuhair: 
      Oh? U see next support at 11.20? Thanks for update.
    • syzuhair: 
      its at 11.20
    • Guavaxf30: 
      Top barrier of 14.60+ was not broken.


      If 13.00 cannot hold today we may see 11.60 as the next support. If that is bretched, all hell will break lose.


      Reality sinking in.
    • TGBboon: 
      obvious market manipulation.
    • Chesterton: 
      well said
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