Rigetti Joins Nvidia, Tesla. AMD in Most Active Options as Quantum Stocks Plunge
$Rigetti Computing(RGTI)$ joined $NVIDIA Corp(NVDA)$
Shares of Rigetti, $IONQ Inc.(IONQ)$
Huang's comments at CES Financial Analyst Q&A Wednesday gave investors a reality check about quantum computing stocks that have been burning cash. In the three that ended Sept. 30, the company reported a loss of $14.8 million or 8 cents a share.
More than 518,400 Rigetti options changed hands as of 11:59 p.m., almost double the 20-day average volume. Put options that give the holders the right to sell shares at $10 each in two days attracted the heaviest trading as the share slump boosted demand for contracts that could protect against further declines.
Tuesday's slump came after the stock's 1,449% climb in 2024. The stock that has been languishing below $2 for much of last year, got a boost in December after $Alphabet-A (GOOGL.US)$ said its quantum computer solved in just five minutes a problem that would take supercomputers around 10 septillion years. That spurred investor enthusiasm over quantum computing stocks, igniting the rally that sent Rigetti shares to an intraday record high of $21.42 on Jan. 6.
"if you kind of said 15 years for very useful quantum computers, that would probably be on the early side, Huang said. "If you said 30, it's probably on the late side. But if you picked 20, I think a whole bunch of us would believe it."
IonQ options volume also soared, landing the company in the seventh slot for the most active stock options. More than 312,000 contracts changed hands so far, more than triple their 20-day average, according to data compiled by Bloomberg.
Quantum Computing was just a step below $MicroStrategy (MSTR.US)$ in the options ranking, with 211,380 contracts changing hands, compared with the average of 122,588.
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