Inverse or “bear” single-stock exchange-traded funds (ETFs) are here. They’ve actually been around in different forms for a few years. But the pace of new product launches is accelerating. Or dare I say, spiking. That creates an opportunity for investors and traders who put in the effort to understand them. Some use leverage, and some don’t. All of them require you to think outside the box. More News from Barchart Investors tend to be hard-wired to focus on “what can I buy that will go up in price.” Tha ...

Key Points Rigetti is a quantum computing company that generates limited revenue but has a lot of long-term potential. Meanwhile, its losses are substantial, and the business may remain in the red for the foreseeable future. The stock trades at close to 2,000 times its trailing revenue, which should give investors pause. 10 stocks we like better than Rigetti Computing › Quantum computing stocks have been rising at feverish levels this year. One of the hottest has been Rigetti Computing (NASDAQ: RG ...

However, it's already showing some signs of success. Rigetti recently announced sales of two of its quantum computing systems for a total of $5.7 million. That's not a massive sale in the grand scheme of things, but it shows that Rigetti is delivering quantum computing products right now. The Asian manufacturer and California tech start-up that made those purchases likely vetted other quantum computing solutions before deciding on Rigetti's systems, so this is a vote of confidence that its technology is amo ...

Core Insights - The rise of quantum computing presents significant investment opportunities, with notable returns for companies like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. [2] - Despite the potential, these companies face substantial challenges, including historical precedents of technology bubbles and unsustainable valuations [5][9]. Investment Opportunities - Quantum computing stocks have shown impressive trailing-12-month returns: IonQ at 347%, Rigetti Computing at 3,500%, D-Wave Quantum at 2,650%, and Quantum Computing Inc. at 1,640% [2]. - The technology has applications in drug development, internet security, weather modeling, financial risk management, and AI algorithm acceleration, indicating a large addressable market [3]. Valuation Concerns - The price-to-sales (P/S) ratios for these quantum computing companies are extremely high, with IonQ at 259, Rigetti at 1,280, D-Wave at 370, and Quantum Computing Inc. at 7,546, suggesting that these stocks are overpriced [10][9]. - Historical data indicates that companies at the forefront of new technologies have struggled to maintain P/S ratios above 30 for extended periods, raising concerns about the sustainability of current valuations [9][6]. Competitive Landscape - The "Magnificent Seven" tech giants, including Amazon, Alphabet, and Microsoft, are investing heavily in quantum computing, which could threaten the market position of pure-play quantum companies [12][19]. - Amazon's Braket service allows access to quantum computers from IonQ and Rigetti, providing a platform for practical applications, but this could also lead to increased competition [13][18]. Financial Challenges - The pure-play quantum computing companies are currently unprofitable and face ongoing cash outflows, which may necessitate reliance on dilutive share offerings or debt financing [15]. - In contrast, members of the Magnificent Seven are generating substantial cash flow, positioning them to dominate the quantum computing space [16].

Core Viewpoint - The Trump administration is negotiating with several U.S. quantum computing companies to replicate its previous investment model with Intel, seeking equity in exchange for federal funding support [1][2]. Group 1: Government Involvement - Companies involved in the negotiations include IonQ, Rigetti Computing, D-Wave Quantum, Quantum Computing, and Atom Computing, with some seeking a minimum funding amount of $10 million [2]. - The U.S. government has previously invested $8.9 billion in Intel, acquiring 9.9% of its shares, making it one of Intel's largest shareholders [2]. - The U.S. Department of Defense agreed to purchase $400 million in preferred stock from MP Materials, becoming its largest shareholder, which led to a 50% increase in the company's stock price on the first trading day after the announcement [2]. Group 2: Market Reaction - Following the news, stock prices of several quantum computing companies surged, with IonQ rising over 11%, D-Wave over 20%, Rigetti over 13%, and Quantum over 10% [3]. Group 3: Quantum Computing Overview - Quantum computing is viewed as a critical next-generation technology capable of performing calculations that would take traditional computers billions of years, potentially accelerating the development of new drugs, materials, and chemicals [5]. - No company has yet achieved practical, large-scale commercial quantum computing, but the field attracts significant interest from major tech companies [5]. - PsiQuantum announced a $1 billion Series E funding round to build the world's first commercially viable fault-tolerant quantum computer, with plans to develop large-scale prototype systems [6].

Group 1 - Several quantum computing companies, including IonQ Inc, Rigetti Computing, and D-Wave Quantum, are in discussions with the U.S. government for federal funding in exchange for equity, although these negotiations are not confirmed as a definitive plan by the Trump administration [1] - The U.S. Department of Commerce stated that it is not currently negotiating equity stakes with quantum computing companies, but multiple firms have proposed government equity investment options, which are under evaluation [1] - The potential funding could come from the remaining balance of the CHIPS Act expenditures during the Biden administration, with the president seeking to ensure a good return for taxpayers, possibly through warrants or loans rather than direct equity investments [1] Group 2 - The backdrop of these discussions is the U.S. government's previous direct equity investments in strategic industries, including a 10% stake in Intel and investments in rare earth and lithium mining companies, indicating a trend towards supporting critical sectors [2] - Quantum computing is regarded as a strategic industry, receiving federal funding since the National Quantum Initiative Act of 2018, and is seen as a next-generation foundational technology with potential applications in pharmaceuticals, materials, and chemistry [2] - Following the rumors, quantum computing stocks experienced significant gains, with IonQ rising by 7.07%, Rigetti by 9.8%, and D-Wave by 13.81%, reflecting a strong short-term trading sentiment despite ongoing policy uncertainties [2]

Core Insights - The Trump administration is negotiating with U.S. quantum computing companies for equity stakes in exchange for federal funding [1][2] - Companies involved include IonQ Inc., Rigetti Computing, and D-Wave Quantum, with discussions led by U.S. Deputy Commerce Secretary Paul Dabbar [2][3] - Funding awards are expected to start at $10 million each, with other firms like Quantum Computing Inc. and Atom Computing considering similar arrangements [3] Government Involvement - The U.S. government previously acquired nearly a 10% stake in Intel by converting $9 billion in grants into equity [5] - The Department of Defense gained a roughly 15% stake in MP Materials, potentially making it the largest shareholder [6] Industry Developments - Microsoft has demonstrated advancements in practical quantum computing, indicating that significant breakthroughs may occur in the near future [7] - Other major players like Google and IBM are also reporting accelerated progress in quantum computing technology [7]

Key Takeaways Rigetti's stock soared over 2,800% amid major contracts and quantum technology milestones. The firm secured U.S. Air Force and Novera deals worth over $11 million combined.Despite progress, falling revenue, higher losses and a lofty valuation raise red flags.Rigetti Computing, Inc.’s (RGTI) shares have gained more than 2,800% in the past year as investors showed excitement over its quantum breakthroughs. However, Rigetti’s weak fundamentals and lofty valuation raised doubts about its future gr ...

Core Insights - Rigetti Computing (RGTI) is demonstrating early commercial traction with approximately $5.7 million in purchase orders for its Novera quantum processing units (QPUs) and related services, indicating validation of its hardware capabilities after extensive R&D investment [1][7] - The company secured a $5.8 million award from the Air Force Research Laboratory in collaboration with QphoX, positioning Rigetti at the forefront of quantum networking [2][7] - Despite uneven quarterly revenues, these developments suggest a turning point for Rigetti, as its technology is being adopted rather than merely tested [3][7] Company Developments - Rigetti's recent contracts and partnerships highlight a successful alignment of technological innovation with commercial opportunities, showcasing growing institutional confidence in its manufacturing and chip-packaging capabilities [2] - The deployment of two Novera systems to an Asian tech manufacturer and a California AI startup marks Rigetti's most significant commercialization milestone to date, with deployments scheduled for the first half of 2026 [1][2] Financial Performance - Rigetti's shares have increased by 136.3% year-to-date, significantly outperforming the industry growth of 19.2% [6] - The Zacks Consensus Estimate for Rigetti's 2025 earnings indicates a substantial 86.1% increase compared to the previous year [10] Valuation Metrics - Rigetti is currently trading at a price-to-book ratio of 21.13, which is above the industry average, and carries a Value Score of F [8]

Core Insights - The U.S. Department of Commerce denied reports that the Trump administration was negotiating equity stakes in quantum computing companies [1][2] - The initial report suggested discussions with companies like IonQ, Rigetti Computing, and D-Wave Quantum, with a minimum investment of $10 million per company [1][2] Group 1: Government Position - The Commerce Department spokesperson clarified that there are currently no negotiations regarding equity stakes with quantum computing firms [1][2] - The Trump administration is considering alternative forms of investment, such as warrants or loans, rather than direct equity stakes [2] - The interest from companies in equity investments stems from previous government actions, including acquiring a 10% stake in Intel and "golden share" rights in other transactions [2] Group 2: Quantum Computing Industry - Quantum computing is viewed as a strategic industry, similar to rare earth minerals, with significant government funding committed [3] - The U.S. government has pledged $1.2 billion for quantum research under the National Quantum Initiative Act signed in December 2018 [3] - Major tech companies, including IBM and Microsoft, are heavily investing in quantum computing, with Google claiming its quantum computer is 13,000 times faster than classical supercomputers [3] - Companies like Quantum Computing, Rigetti, and D-Wave have expressed interest in potential government funding opportunities [3]