Why Rigetti Computing Slipped 23.4% Last Month
The energy is coming out of the quantum computing theme.
Shares of quantum computing firm Rigetti Computing (RGTI) plummeted 23.4% last month, according to S&P Global Market Intelligence. Once a market darling in 2025, the stock has plummeted 80% from its peak as investors abandon the thematic trade. Rigetti remains unprofitable and is experiencing significant cash burn, generating only $5 million in revenue last quarter and an operating loss of $28 million.
The company's free cash flow has turned to a $88 million loss over the past year and continues to worsen. With $366 million in cash reserves, Rigetti may need to raise capital in the coming years if cash burn continues to escalate. Despite trading at a market cap of $3.7 billion, the stock trades at an exorbitant price-to-sales ratio of 275, making it a highly expensive investment.
With no clear path to profitability and management continually diluting shareholders, Rigetti Computing is likely to decline further in the near term.
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