Rigetti Computing What S Next After The Setback

Bonisiwe Shabane

-Jan 2, 2026, 3:42 PM

rigetti computing what s next after the setback

Investor confidence in Rigetti Computing has been shaken by a challenging third quarter and a significant competitive loss. The quantum computing firm now confronts heightened skepticism from Wall Street as it must demonstrate tangible operational progress to justify its premium valuation, despite having recently bolstered its cash reserves. Financially, Rigetti maintains a solid position. As of early November, the company held approximately $600 million in cash and liquid investments, a substantial cushion strengthened in part by the exercise of warrants. However, this financial stability contrasts sharply with its market valuation. Rigetti trades at a price-to-book ratio of nearly 25, a figure that vastly exceeds the industry average of 6.

This premium leaves little room for operational missteps, especially given the intense competition from rivals like D-Wave Quantum and IonQ. The recent quarterly results did little to support this high multiple. Revenue declined 18% year-over-year to $1.9 million, primarily due to the conclusion of grants from the National Quantum Initiative and delays in government contract awards. Should investors sell immediately? Or is it worth buying Rigetti? A deeper concern emerged in the company’s profitability metrics.

The gross margin collapsed to 21%, a stark drop from 51% in the prior-year period, while operating expenses rose to $21 million. Strategically, the failure to secure the “Phase B” contract from DARPA represents a substantial setback. This loss raises serious questions about Rigetti’s competitiveness in securing lucrative government contracts and undermines confidence in its near-term execution capabilities. Quantum computing exploded onto the investment scene in late 2024, igniting a frenzy that propelled pure-play stocks to astronomical heights. Rigetti Computing (RGTI) emerged as one of the biggest beneficiaries, with shares rocketing over 800% in a single month amid breakthrough announcements and surging optimism. Over the past three years, RGTI has delivered staggering gains of more than 3,200%, and at its peak, the stock was up over 8,200% from historic lows.

Early investors have undeniably struck a rich motherlode, turning modest bets into life-changing wealth. Yet for those new to the quantum sector, the ride has been brutal. On Friday, RGTI tumbled almost 9% to close 61% below its October high of $58, erasing much of the year's explosive gains. This pullback mirrors broader pain across quantum stocks like IonQ (IONQ) and D-Wave (QBTS), which have also plunged sharply after similar booms and busts. With the entire sector reeling, investors need to ask: Is the hype surrounding quantum computing finally over – and is RGTI still a buy? Quantum computing harnesses principles of quantum mechanics, using qubits that can exist in multiple states simultaneously (superposition) and become entangled.

Unlike classical bits limited to 0 or 1, this enables quantum systems to explore vast solutions exponentially faster for certain problems. The potential is transformative: faster drug discovery by simulating molecules, optimized financial models, unbreakable encryption breakthroughs, and efficient logistics routing. Quantum could reshape industries from pharmaceuticals to materials science, unlocking solutions classical computers can't touch in reasonable time. As of December 9, 2025, Rigetti Computing, Inc. (NASDAQ: RGTI) remains one of the wildest rides in quantum computing. The stock is trading around $27–28 per share, with intraday moves between roughly $26.9 and $28.2, implying a market cap just under $10 billion on trailing 12‑month revenue of only about $7.5 million.

StockAnalysis Over the past year, Rigetti’s share price has gone parabolic and then some—up roughly 586% over the last 52 weeks by one hedge fund’s tally and around 3,750% since January 2023—yet the stock also... AOL Today’s headlines capture that tension perfectly. Zacks now frames Rigetti as a high‑risk “wait‑and‑see” story after weak Q3 numbers and a miss in DARPA’s Quantum Benchmarking Initiative Stage B selection, rating the stock a Hold. At the same time, billionaire Ken Griffin’s Citadel Advisors disclosed a new Q3 position of 51,700 RGTI shares, a small but symbolic bet on quantum’s long‑term upside.

TradingView Below is a detailed look at Rigetti’s latest stock news, fundamentals, and forecasts as of December 9, 2025. Real‑time quotes show RGTI around $27–28 on December 9, modestly down on the day and well below its recent peak above $58, but still dramatically higher than its 52‑week low near $4.28. StockAnalysis A wave of concern hits Rigetti Computing Inc. as negative sentiment from multiple news articles, including reports on system delays and operational challenges, rattles investor confidence.

On Wednesday, Rigetti Computing Inc.’s stocks have been trading down by -6.62 percent. Live Update At 17:03:10 EST: On Wednesday, March 26, 2025 Rigetti Computing Inc. stock [NASDAQ: RGTI] is trending down by -6.62%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below. As millionaire penny stock trader and teacher Tim Sykes, says, “The goal is not to win every trade but to protect your capital and keep moving forward.” Successful trading involves not just understanding the... One must remember that the key to longevity in trading is the preservation of capital.

Staying disciplined and not overextending oneself in pursuit of every opportunity is crucial. Instead, one should focus on consistent progress while safeguarding their financial resources. Rigetti Computing recently reported their earnings, revealing a challenging quarter. The revenue came in under the consensus, highlighting potential operational inefficiencies. This revenue shortfall has optimized the stock’s future performance anticipations unfavorably. With impressive fallouts in operating numbers, notably the substantial negative EBIT margins and consecutive net losses, the company’s financial health seems stressed.

The tech firm is battling steep losses with growing scrutiny from investors. A widened loss has undoubtedly triggered alarm inversions, echoed by the CTO’s significant reduction of his ownership. Reading between the lines, it might reflect internal nervousness regarding near-term projections. Still, given Rigetti’s current cash position and strategic shifts seen in their cash flow, maneuvers might be on the horizon. Rigetti Computing, Inc. (RGTI Quick QuoteRGTI - Free Report) has recently been on Zacks.com's list of the most searched stocks.

Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Over the past month, shares of this company have returned +0.7%, compared to the Zacks S&P 500 composite's +3% change. During this period, the Zacks Internet - Software industry, which Rigetti Computing falls in, has gained 7.9%. The key question now is: What could be the stock's future direction? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually... Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection.

This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Rigetti Computing, a pure-play quantum hardware and software firm, recently achieved a key technical milestone and is now pushing toward early commercialization.

In mid-2025, Rigetti announced general availability of its 36-qubit multi-chip quantum computer and reported a 99.5% median two-qubit gate fidelity on that system. These developments come amid mounting investor expectations for quantum computing’s transition from laboratory to market. Financially, Rigetti bolstered its balance sheet via a $350 million equity offering in 2025 that strengthened its cash reserves. Meanwhile, revenue remains modest and volatile, reflecting the early stage of quantum technology. In this climate, the company is navigating both technical challenges and market pressures as it seeks to turn breakthroughs into stable business outcomes. Rigetti’s near-term technical agenda centers on scaling qubit count, improving error rates, and advancing modular architectures.

The company has set a target to grow beyond its 36-qubit multi-chip system toward a 100+ qubit architecture later in 2025 and further toward the 1,000+ qubit range over several years. Achieving high fidelity and reducing noise remain critical, Rigetti’s recent milestone of 99.5% median two-qubit gate fidelity on its modular 36-qubit platform marked a roughly twofold improvement in error rate versus prior designs.

Rigetti Computing What S Next After The Setback

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