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Rigetti Computing’s Stellar Climb: Is it Sustainable?

Ellis HobbsAvatar
Written by Ellis Hobbs Reviewed by Jack Kellogg Fact-checked by Tim Sykes
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A significant boost for Rigetti Computing Inc. comes from the announcement of a transformative quantum collaboration, driving market enthusiasm. On Wednesday, Rigetti Computing Inc.’s stocks have been trading up by 4.66 percent.

Major Developments and Collaborations

Candlestick Chart

Live Update At 17:20:36 EST: On Wednesday, February 19, 2025 Rigetti Computing Inc. stock [NASDAQ: RGTI] is trending up by 4.66%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Rigetti Computing, together with QphoX and Qblox, has achieved a significant feat in superconducting qubit technology, as reported by Nature Physics. This breakthrough reinforces Rigetti’s influence in quantum research.
  • Analysts at Alliance Global Partners have made a notable move, elevating Rigetti’s price target to $15, foreseeing the firm gaining several awards via the DARPA Quantum Benchmarking contract. Legislative changes such as the Quantum Re-Authorization Act could also bring $2.7B in federal R&D funds, benefiting companies like Rigetti.
  • Another positive nod comes from Needham, which has increased Rigetti’s price target from $2 to $17. Their enthusiasm centers on Rigetti’s recent technological advances and anticipated impacts from the quantum computing market which might disrupt the $1T computing scene over the next ten years.
  • In terms of market sentiment, B. Riley has lifted Rigetti’s price target to $15, maintaining a confident ‘Buy’ outlook, bolstered by moves from tech giants like Microsoft aiming to pivot into the quantum realm by 2025.

Financial Overview of Rigetti

As millionaire penny stock trader and teacher Tim Sykes says, “Cut losses quickly, let profits ride, and don’t overtrade.” This principle is essential for every trader striving for success in the volatile markets. Adhering to these rules can significantly enhance the chance of profitability. By promptly cutting losses, traders can avoid the trap of holding onto losing positions. Letting profits ride ensures that traders take full advantage of winning trades, and avoiding overtrading helps maintain discipline and emotional stability, essential traits for achieving long-term success.

Recent financial metrics throw light on Rigetti’s performance in the volatile quantum sector. Despite challenges, the company’s gross margin continues to shine at 60.6%. On the flip side, staggering negative figures like the -509.34% profit margin throw caution to an otherwise budding scenario. From the reported recent earnings, revenue stood at $12M, underlining steady progress in the income channel amidst broader industry turbulence.

Moreover, Rigetti’s total equity stands firm at about $122M, painting a picture of robustness. However, profit margins look grim, reflecting the inherent risks in venturing this innovative space. Recent quarterly releases disclose a $14.8M loss in net income, framing the landscape for investors with a healthy appetite for potential gains in novel tech avenues.

Delving into the Market Impact of Partnerships

Partnering with QphoX and Qblox, Rigetti’s latest win in reading superconducting qubits shapes the quantum industry landscape. This timely enhancement in tech could initially swoon the market towards positive trends. With R&D investments projected, courtesy of the Quantum Re-Authorization Act, Rigetti stands to claim formidable market share if all plays out according to the predictions.

More Breaking News

In cross-sector growth, companies operating on quantum tech have immense potential to offer, marked by federal attention and legislative backing. As alliances firm up, the outlook hints at Rigetti gaining more from these entwined efforts and not just market share but a foothold in pioneering quantum solutions.

A Deeper Look: Rigetti’s Financial Data

Rigetti’s financial report pegs revenue at $2.4M for the latest quarter, showcasing some uplift despite a net income shortfall. The valuation metrics reveal a pricier entry relative to earnings, with the Price-to-Sales ratio registering a hefty 231.49, reinforcing investor confidence in potential future returns. However, caution beckons in the form of a significant -60% capital leverage, sprouting from high R&D pursuits.

On the liquidity front, Rigetti is buoyant with a quick ratio of 4.8—an asset position favorable for handling future obligations. In grappling high debt to equity ratio concerns, investors might be comforted by the company’s current ratio set at a solid grounding in the near term.

Conclusions

Through partnerships and financial maneuvering, Rigetti Computing has made significant strides to position itself as a leading name in the rapidly evolving quantum computing sector. With enormous potential looming on the horizon and federal backing beckoning the industry, Rigetti finds itself in a favorable spotlight. Although profitability faces hurdles amid R&D-focused spending, its strategic ties with tech heavyweights and fortified market sentiment provide robust support for its upward trend.

Traders face a crossroads where calculated risks, supported by solid groundwork and innovative collaborations, could potentially yield lucrative returns in the quantum advent. However, 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.” Whether these prospects align with the long-term potential or fizzle out under the weight of expectations remains a question for market aficionados to ponder.

This content is produced using automated systems designed to deliver timely stock news. All material is reviewed by our editorial team and is provided solely for informational and entertainment purposes. It does not constitute professional investment advice. For additional details, please refer to our [Terms of Service]

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”