University of Kwazulu-Natal

Why Is Rigetti Computing S Stock Tumbling Key Insights And What Lies A

Bonisiwe Shabane
-
why is rigetti computing s stock tumbling key insights and what lies a

Written by Anders Bylund for The Motley Fool-> Rigetti Computing's stock plummeted 42% in November after reporting an 18% revenue decline and ballooning losses of $201 million in Q3 2025. The company's full-stack approach to quantum computing is impressive, but the technology remains years away from practical commercial advantages over traditional computers. This stock might just be "the next Aurora Cannabis," which would be an unfortunate fate. Shares of quantum computing expert Rigetti Computing (NASDAQ: RGTI) fell 42.2% in November 2025, according to data from S&P Global Market Intelligence. The bearish timeline included a disappointing earnings report, which erased October's 48.6% gain and then some.

Rigetti's stock lost 14.2% of its value across the two-month span from Sept. 30 to Nov. 29. On Tuesday, Rigetti Computing Inc.’s stocks have been trading down by -8.1 percent amid concerns over technology volatility. Live Update At 12:04:39 EST: On Tuesday, September 02, 2025 Rigetti Computing Inc. stock [NASDAQ: RGTI] is trending down by -8.1%!

Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below. It’s been a tough quarter for Rigetti Computing. Their revenue numbers fell short, amplifying concerns among investors. The profits dried up, and losses mounted. Revenue for the period sat at $10.79M, a sore number for analysts who expected much more promising figures. The gross margin painted a glimmer of hope at 40.6%, yet overshadowed by the grim profitability margins.

The EBIT margin hit rock bottom at -2065%, leaving investors scratching their heads. Despite these setbacks, the balance sheet still provides some comfort. Cash reserves are sitting at $57.18M, ensuring they keep the wheels turning for now. Their short-term liabilities are manageable, thanks in part to a current ratio of 41.6. But with a leverage ratio of 1.2 and total equity heavily tied to volatile external investments, many wonder about their financial strategy. A glance at the cash flow statement reveals some more telling challenges.

Rigetti burnt through piles of cash, with investments seeming more like cash drains rather than cash seeds. Some investors are waiting, watching and hoping their high-stake gambits to future-proof the company turn the tide soon. Despite Rigetti Computing Inc.’s contract win with the U.S. Department of Energy and its strategic leadership enhancement with new board members, the company’s stock is under pressure, likely influenced by broader market concerns or investor caution. On Wednesday, Rigetti Computing Inc.’s stocks have been trading down by -3.51 percent. Live Update At 14:32:11 EST: On Wednesday, January 22, 2025 Rigetti Computing Inc.

stock [NASDAQ: RGTI] is trending down by -3.51%! 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, “There is always another play around the corner; don’t chase just because you feel FOMO.” This advice is particularly important for traders who often... Trading requires patience and strategic thinking, not impulsive decisions driven by emotions. Recognizing that another opportunity will present itself allows traders to make more calculated decisions and avoid unnecessary risks. Rigetti Computing has been through a tumultuous time, reflecting the precarious state of the quantum computing industry.

The financial records paint a trying picture. Facing mounting losses, the company trudged through with total revenue hovering just above $12M last quarter. Operating expenses overshadowed the revenue, reaching nearly $19.7M, highlighting the substantial strain on their balance sheet. Their net losses continued, reporting a negative $14.8M in income. Despite some innovations in quantum tech, practical applications seem years away, according to industry experts, leading to skepticism about investing in RGTI. Shares of Rigetti Computing Inc (NASDAQ:RGTI) are trading lower Friday, extending a recent downturn as the broader quantum computing sector cools off from a massive rally.

What Too Know: Headwinds for Rigetti intensified this week following reports that CEO Subodh Kulkarni sold his entire 1 million-share stake, a move that has raised significant investor concern about leadership’s conviction. The sale has raised questions about insider conviction in the company’s long-term prospects, creating skepticism that is overshadowing previous positive developments. The current weakness marks a sharp reversal for the company. The stock had surged over 5,000% in the past year, propelled by developments including a contract with the U.S. Air Force and a partnership with Nvidia. However, the focus has now shifted from market hype to scrutiny over insider commitment and the challenging path to commercial viability.

Read Also: Rigetti, Joby, QuantumScape — Meet The $0 Revenue Moonshots 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. Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the... Thomas Fuller / SOPA Images / LightRocket via Getty Images Rigetti Computing (RGTI) shares slumped 10% Tuesday, a day after the provider of quantum computing services' sales sank and its profit came from an accounting gain. The company reported first-quarter revenue plunged 52% year-over-year to $1.5 million. Rigetti did post earnings per share of $0.13, compared to a $0.14 loss the previous year.

However, net income of $42.6 million included $62.1 million in "non-cash gains from the change in fair value of derivative warrant and earn-out liabilities." According to a transcript provided by AlphaSense, CFO Jeffrey Bertelsen told analysts on the earnings call Monday that "lower gross margins on a year-over-year basis were due to ongoing revenues from our contract with...

People Also Search

Written By Anders Bylund For The Motley Fool-> Rigetti Computing's

Written by Anders Bylund for The Motley Fool-> Rigetti Computing's stock plummeted 42% in November after reporting an 18% revenue decline and ballooning losses of $201 million in Q3 2025. The company's full-stack approach to quantum computing is impressive, but the technology remains years away from practical commercial advantages over traditional computers. This stock might just be "the next Auro...

Rigetti's Stock Lost 14.2% Of Its Value Across The Two-month

Rigetti's stock lost 14.2% of its value across the two-month span from Sept. 30 to Nov. 29. On Tuesday, Rigetti Computing Inc.’s stocks have been trading down by -8.1 percent amid concerns over technology volatility. Live Update At 12:04:39 EST: On Tuesday, September 02, 2025 Rigetti Computing Inc. stock [NASDAQ: RGTI] is trending down by -8.1%!

Discover The Key Drivers Behind This Movement As Well As

Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below. It’s been a tough quarter for Rigetti Computing. Their revenue numbers fell short, amplifying concerns among investors. The profits dried up, and losses mounted. Revenue for the period sat at $10.79M, a sore number for analysts who expected much more promising figures. The gross margin pai...

The EBIT Margin Hit Rock Bottom At -2065%, Leaving Investors

The EBIT margin hit rock bottom at -2065%, leaving investors scratching their heads. Despite these setbacks, the balance sheet still provides some comfort. Cash reserves are sitting at $57.18M, ensuring they keep the wheels turning for now. Their short-term liabilities are manageable, thanks in part to a current ratio of 41.6. But with a leverage ratio of 1.2 and total equity heavily tied to volat...

Rigetti Burnt Through Piles Of Cash, With Investments Seeming More

Rigetti burnt through piles of cash, with investments seeming more like cash drains rather than cash seeds. Some investors are waiting, watching and hoping their high-stake gambits to future-proof the company turn the tide soon. Despite Rigetti Computing Inc.’s contract win with the U.S. Department of Energy and its strategic leadership enhancement with new board members, the company’s stock is un...