Why Rigetti Computing Shares Are Dropping Now Tipranks

Bonisiwe Shabane

-Jan 2, 2026, 3:17 PM

why rigetti computing shares are dropping now tipranks

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. 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. Rigetti Computing Inc (NASDAQ:RGTI) is trading lower Friday afternoon, marking a reversal after a surge earlier in the week driven by retail momentum and sector-wide optimism. The recent volatility comes amid a classic Santa Rally, where retail investors earlier this week rotated into high-beta quantum stocks while institutional trading desks thin out for the holidays. What To Know: Earlier gains this week were fueled by a wave of social media sentiment focused on Rigetti’s 2026 roadmap, which promises higher-qubit systems and significantly lower error rates.

This retail interest was compounded by a halo effect from peers like IonQ and D-Wave, which also saw spikes following strategic milestones and bullish analyst coverage. Notably, Wedbush recently initiated coverage on Rigetti with an Outperform rating and a $35 price target, citing the company’s advanced chiplets and vertically integrated production capabilities as key differentiators. Market observers note that this week’s price action fits the pattern of a “Holiday Gap,” where lower trading volumes between Dec. 20 and New Year’s allow retail sentiment to move small-cap stocks more aggressively. While retail investors likely drove the stock higher earlier in the week on the belief that the “quantum age” could arrive by 2026, Friday’s downturn suggests a pause in the momentum as the holiday... 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.

Why Rigetti Computing Shares Are Dropping Now Tipranks

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