University of Kwazulu-Natal

Rigetti Shares Plunge As Valuation Concerns Mount

Bonisiwe Shabane
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rigetti shares plunge as valuation concerns mount

Johnson & Johnson shares are trading near record highs, yet major institutional investors are sending mixed signals... Oakland, CA – November 12, 2025 – Rigetti Computing (NASDAQ:RGTI) experienced a significant downturn in its stock performance today, with shares declining notably following a series of analyst reassessments that have cast a shadow... The cumulative effect of these downgrades and revised price targets reflects growing concerns among financial experts regarding the company's financial health, ambitious valuation, and heavy reliance on government contracts in a rapidly evolving technological... This recent market reaction underscores the volatile nature of the quantum computing sector and the challenges companies like Rigetti face in translating groundbreaking research into sustainable commercial success. The immediate implications for Rigetti Computing are clear: a dent in investor confidence and increased scrutiny on its operational efficiency and funding strategies. The stock's recent struggles highlight a pivotal moment for the company as it navigates the demanding path from innovation to profitability, with analysts questioning whether its current market valuation accurately reflects its underlying fundamentals...

The recent slide in Rigetti Computing's stock can be traced back to a series of critical analyst reports issued around early to mid-November 2025. On November 3, B. Riley Securities, led by analyst Craig Ellis, initiated a significant shift by downgrading Rigetti from a "Buy" to a "Neutral" rating. While Ellis raised the price target to $42.00 from $35.00 at that time, the downgrade was predicated on the belief that the stock's triple-digit gains had already priced in a "significant percentage of long-term... funding authorizations due to a federal government shutdown were flagged as a substantial sales risk, particularly for Rigetti, which is more heavily reliant on government funding compared to its peers. Adding to the bearish sentiment, on November 11, Seeking Alpha analyst Uttam Dey issued a stark "Sell" rating for Rigetti.

Dey's assessment was based on a litany of concerns, including the company's weak financials, characterized by declining revenue and widening losses, coupled with what was deemed an "extremely high valuation" – trading at over... Disappointing third-quarter 2025 results, which showed an 18% decline in revenue and a collapse of gross margins to 20.8%, further fueled this pessimistic outlook. The analyst also highlighted that a recent $625 million funding announcement from the U.S. Department of Energy (DOE) fell significantly short of industry expectations, which had hovered around $2.5 billion, thereby dampening near-term optimism. The market continued to react on November 12, with Benchmark analyst David Williams maintaining a "Buy" rating but lowering the price target to $40.00 from $50.00. Williams cited a broader slowdown in momentum across the quantum technology landscape following Rigetti's third-quarter results and noted that recent volatility across emerging technology and AI sectors had dampened investor enthusiasm for quantum-related shares.

Concurrently, B. Riley Securities, in an update on November 12, reiterated its "Neutral" rating and further lowered its price target from $42.00 to $35.00, reflecting persistent caution. These combined actions have created a challenging environment for Rigetti, with its stock experiencing significant downward pressure, including a reported 15.8% hit in the week leading up to November 12, and a notable decline... Shares of Rigetti Computing (RGTI), a developer of quantum computing systems, experienced a dramatic decline, collapsing 40% over the past month. The stock fell from $39 in early November to $23.45 on December 1, reflecting significant investor concern over the company's financial health and leadership alignment. The sharp sell-off was triggered by a confluence of negative factors, including an 18% decrease in revenue.

This revenue contraction signals potential headwinds in the highly competitive and capital-intensive quantum computing sector. Adding to the market's anxiety is the revelation that the company's Chief Executive Officer maintains zero shares in Rigetti Computing. This lack of direct equity alignment between the CEO and shareholder interests often raises red flags regarding management's commitment to long-term stock performance and accountability. The 40% drop in share price, coupled with the 18% revenue decline, places significant pressure on Rigetti's management to articulate a clear path to growth and profitability. While the recent performance has been punishing, a look at the two-year historical data for RGTI reveals a highly volatile, yet historically rewarding, trajectory. Over the past two years, the stock has delivered a remarkable Total Return of 1958.62%, with an Annualized Return and Compound Annual Growth Rate (CAGR) of 353.72%.

This performance is underscored by a high Sharpe Ratio of 32.51, suggesting that the stock has delivered exceptional returns relative to its risk. Johnson & Johnson shares are trading near record highs, yet major institutional investors are sending mixed signals... Oakland, CA – November 13, 2025 – Rigetti Computing (NASDAQ: RGTI), a prominent player in the nascent quantum computing sector, saw its share price plummet by approximately 11% today, extending a week-long losing streak... This significant downturn follows a series of analyst downgrades and a disappointing third-quarter earnings report, signaling growing investor skepticism regarding the company's valuation and the broader commercial viability of quantum computing in the near... The sharp decline underscores a critical juncture for Rigetti and the wider quantum industry. As the market grapples with the gap between ambitious technological roadmaps and tangible financial performance, the recent events surrounding Rigetti could prompt a re-evaluation of high-growth, pre-profit companies in emerging tech sectors.

The current volatility for Rigetti Computing began to escalate in early November with a series of critical reassessments from financial analysts. On November 3rd, B. Riley Securities initiated a notable shift in its stance, downgrading Rigetti from a "Buy" to a "Neutral" rating. While B. Riley simultaneously raised its price target on RGTI shares from $35 to $42, the rationale behind the downgrade centered on concerns that the stock's explosive rally—a staggering 3,499% over the past year and 190%... government funding authorizations, a crucial revenue stream for the company.

This initial downgrade saw RGTI shares slip by 10.26% on the day. Echoing similar sentiments, Raymond James followed suit around November 10th, downgrading RGTI stock from "Buy" to "Hold." Their reasoning largely aligned with B. Riley's, citing persistent government funding delays and the belief that much of the stock's future potential was already factored into its lofty price. The negative sentiment was further compounded on November 11th when a Seeking Alpha analyst issued a "Sell" rating, pointing to Rigetti's weak financials, characterized by declining revenue and widening losses, an "extremely high valuation"... The company's third-quarter fiscal 2025 results, released after market close on Monday, November 10th, acted as another significant catalyst for the negative market reaction. While Rigetti technically surpassed EPS estimates by reporting a non-GAAP net loss of $0.03 per share (against an expected $0.05), it significantly missed revenue expectations, posting only $1.9 million against a consensus estimate of...

This revenue shortfall, an 18% decline year-over-year, contributed to shares falling 2.4% in after-hours trading on Monday. The losses extended into the week, with the stock plunging over 8% on Tuesday, November 11th. By Wednesday, November 12th, Rigetti's shares were down another 9.9% after B. Riley further cut its price target to $35 from $42, albeit maintaining a neutral rating. The cumulative effect culminated in Rigetti's shares closing down 9.87% today, November 13th, at $28.30 per share, extending its losing streak for a fifth consecutive day. Daily stocks & crypto headlines, free to your inbox

By continuing, I agree to the Market Data Terms of Service and Privacy Statement As investors begin to wonder if Rigetti Computing’s skyrocketing price can keep up with its poor financial performance, the company’s incredible surge may be reaching its first significant hurdle. Shares of Rigetti Computing (NASDAQ: RGTI) surged an extraordinary 286% since early September, but Wednesday brought an 8% decline, pulling the stock from its record $58 high to below $52. Despite the pullback, Rigetti remains one of the most explosive performers of 2025, climbing from below $1 in late 2024 to a market capitalization of roughly $16.9 billion. This meteoric ascent—over 6,000% in one year—was fueled by growing enthusiasm for the quantum computing sector, as investors piled into what many see as the next frontier of technological innovation. Rigetti’s rise has mirrored gains in other quantum leaders like IonQ and D-Wave, as investors increasingly rotate from AI-focused bets toward quantum computing as the “next big theme.”

The sector received another boost when JPMorgan Chase announced a $10 billion investment initiative targeting high-tech industries, including quantum technology, under its “Security and Resiliency Initiative.”

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