Core Investment Philosophy - Investing in the stock market requires extraordinary patience, as demonstrated by Warren Buffett's transformation of Berkshire Hathaway from a struggling textile company into a diversified holding company, resulting in a $1,000 investment in 1965 being worth over $42 million today, showcasing the power of compounding returns over time [1] Growth Companies - The lesson emphasizes that when a genuine winner is found, it is crucial to resist the urge to sell, as small growth companies can evolve into mid-cap powerhouses and eventually stable, dividend-paying large caps, creating significant wealth for patient shareholders [2] Company Highlights - **Intuitive Machines**: Dominates the lunar economy with successful Moon landings and exclusive contracts, positioned to benefit from the developing multitrillion-dollar space economy as lunar missions accelerate [5] - **Palantir Technologies**: Leverages AI to solve complex data problems for governments and Fortune 500 companies, with its Artificial Intelligence Platform driving explosive commercial growth and creating high-margin revenue streams [6] - **Rocket Lab USA**: Provides end-to-end space solutions, capturing multiple revenue streams across the space value chain, with a reliable rocket and expanding reusability program for the small satellite market [7] - **Serve Robotics**: Leads in autonomous delivery with sidewalk robots generating revenue in major cities, partnered with Uber to enhance distribution and address last-mile delivery challenges [8] - **Archer Aviation**: Pioneers electric vertical takeoff and landing aircraft for urban air mobility, with a $6 billion order backlog and partnerships with major operators, aiming to transform urban transportation [9] - **Joby Aviation**: Complements Archer in the eVTOL space with advanced aircraft technology and a partnership with Toyota, achieving significant regulatory milestones and operational testing [10] - **Rigetti Computing**: Develops quantum computing systems with cloud-based access, positioned at the forefront of the quantum computing race, offering exposure to a technology that could revolutionize various fields [11]

Core Insights - Rigetti Computing, Inc. reported first-quarter revenue of $1.47 million, which fell short of analyst expectations of $2.55 million, while earnings of 13 cents per share exceeded estimates for a loss of 6 cents per share [1] - Analyst N. Quinn Bolton lowered the price forecast from $17.00 to $15.00 but maintained a Buy rating [1] Revenue and Financial Performance - Revenue fell short of expectations due to pending reauthorization of the DOE Quantum Leadership Act [2] - Revenue estimates were revised down to $6.8 million for 2025 (from $13.5 million) and $15.0 million for 2026 (from $25.0 million) [4] Key Developments and Awards - DARPA selected Rigetti for its QBI program (Stage A) and the company received a $5.48 million AFOSR award for developing Alternating-Bias-Aided Annealing (ABAA) fabrication technology [2] - The company achieved optical control of superconducting qubits, which may reduce thermal load and physical footprint in future systems [3] - Rigetti is increasing its U.K. presence with three Innovate U.K. Quantum Mission Pilot Awards and completed a $35 million investment from Quanta Computer [3] Market Reaction - RGTI shares increased by 19.70% to $11.80 as of the last check on Wednesday [4]

Group 1: Momentum Stocks Overview - Momentum stocks are characterized by rapid upward trends compared to the market, driven by innovation, psychology, and market momentum [1] - Retail traders can capitalize on these stocks through chart reading and risk management, particularly in short-to-intermediate time frames [1] Group 2: Rigetti Computing - Rigetti Computing (RGTI) aims to build powerful quantum computers and has a current revenue of just over $1 million, projected to grow to $37.65 million next year [2] - Zacks Consensus Estimates indicate year-over-year growth of 159.30% for the next year, with current quarter estimates at $3.16 million [3] - RGTI has secured several government contracts, including one with DARPA, and is breaking out of a long base structure [3] Group 3: SoundHoundAI - SoundHoundAI (SOUN) is a leader in AI voice solutions and has a partnership with Nvidia, distinguishing it from slower-moving mega-cap tech stocks [7] Group 4: Carvana - Carvana (CVNA) was near bankruptcy in late 2022 but has since secured financing and transformed its fundamentals, with shares rising from single digits to over $300 [9][10] - The stock is currently breaking out and holds a Zacks Rank 2 (Buy) rating [10] Group 5: Market Opportunities - The current market environment presents significant opportunities in quantum computing and AI stocks for nimble traders seeking super performance [11]

Core Viewpoint - Rigetti Computing (RGTI) has faced significant challenges in its first-quarter 2025 earnings, with a 15% drop in shares following a substantial revenue decline of over 50% year-over-year, raising concerns about its operational efficiency and market position [1][2]. Financial Performance - RGTI reported an adjusted loss per share of 8 cents and revenues of $1.5 million, missing Zacks Consensus Estimates by 60% for earnings and 40.2% for revenues [1][2]. - Operating expenses increased to $22.1 million, primarily due to higher compensation and tax-related costs, indicating ongoing challenges in scaling operations efficiently [2]. Market Position and Stock Performance - RGTI shares have underperformed compared to the Zacks Computer & Technology sector and industry peers, with a year-to-date decline of 35.4%, while the broader sector has decreased by 4.5% [3][4]. - The stock is currently trading at a price-to-book (P/B) ratio of 22.2X, significantly higher than the industry average of 5.87X, suggesting that investors are valuing the company based on its potential rather than current financial performance [19]. Growth Opportunities - Rigetti achieved a significant scientific milestone by integrating a hybrid microwave-optical quantum transducer with a superconducting qubit, which could enhance the scalability of quantum systems [7]. - The company applied its "quantum preconditioning" algorithm to a real-world energy grid problem, demonstrating practical quantum advantage and enhancing classical optimizers' performance [8]. - Rigetti's cash position stands at $237.7 million, providing a financial cushion amid short-term pressures [2]. Strategic Developments - Rigetti secured a $5.5 million grant from the U.S. Air Force and a $35 million investment from Taiwan's Quanta Computer, indicating growing institutional confidence in its quantum capabilities [2][12]. - The company was selected for DARPA's Quantum Benchmarking Initiative, which is a strong endorsement of its technical vision and positions it at the forefront of national quantum computing efforts [10]. Future Projections - Sales are projected to rise by 36.4% in 2025 and 153.3% in 2026, with EPS expected to turn positive, indicating improved operational efficiency [14]. - The global quantum computing market is anticipated to grow at a CAGR of 20.5% from 2025 to 2030, positioning Rigetti to benefit from this expansion [9].

Group 1 - Rigetti Computing, Inc (NASDAQ: RGTI) is positioned in the quantum computing sector and has seen significant growth due to the industry's hype [1] - The focus is on identifying high-quality companies with a market capitalization of less than $10 billion, which presents substantial growth opportunities [1] - The ideal companies should exhibit a long-term capability for capital compounding, aiming for a compound annual growth rate that could yield tenfold returns or more [1] Group 2 - A long-term investment perspective is emphasized, suggesting that this approach may yield higher returns compared to market indices in a rapidly changing investment environment [1] - A conservative investment strategy is primarily adopted, with occasional pursuits of opportunities that present a favorable risk-reward ratio [1] - Investments are carefully considered and allocated proportionally within the portfolio to ensure overall stability [1]

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Rigetti Computing, Inc. (RGTI) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.05. This compares to loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -60%. A quarter ago, it was expected that this company would post a loss of $0.08 per share when it actually produced a loss of $0.08, delivering no surprise. Over the last four quarters, the company has surpassed ...

Financial Data and Key Metrics Changes - Revenues in Q1 2025 were $1,500,000, down from $3,100,000 in Q1 2024, indicating a significant decline [12] - Gross margins decreased to 30% in Q1 2025 from 49% in Q1 2024, primarily due to lower margins from a contract with the UK's NQCC [12] - Total operating expenses (OpEx) increased to $22,100,000 in Q1 2025 from $18,100,000 in the same period last year, driven by salary increases and higher stock compensation expenses [13] - The operating loss for Q1 2025 was $21,600,000, compared to $16,600,000 in the prior year [13] - The company recorded a net income of $42,600,000 in Q1 2025, a turnaround from a net loss of $20,800,000 in Q1 2024, largely due to favorable non-cash changes in derivative warrant and earn-out liabilities [14] Business Line Data and Key Metrics Changes - The company is focusing on advancing its utility-scale quantum computer concept through collaborations and government contracts, which are critical for future sales [4][5] - The NQCC contract is noted for having lower gross margins, but it is strategically important for the company to establish itself in the UK quantum ecosystem [50] Market Data and Key Metrics Changes - The company is actively participating in DARPA's quantum benchmarking initiative, which is crucial for advancing utility-scale quantum computing [4][27] - The interest in quantum computing remains primarily in R&D, with significant government contracts driving current sales, but commercial sales are expected to be several years away [39] Company Strategy and Development Direction - The company aims to scale up qubit counts using a chiplet approach, with plans to demonstrate over 100 qubits by the end of 2025 [16][18] - The focus is on achieving higher fidelity and faster gate speeds as part of the roadmap to utility-scale quantum computing [26][56] - The partnership with Quanta Computer is strategic, with a commitment of $250,000,000 over five years to support non-GPU hardware development [90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the NQI reauthorization bill, which is expected to provide funding for quantum computing initiatives, although delays are anticipated [20][46] - The company is still in the R&D phase of quantum computing, with expectations that significant commercial sales will not materialize for another three to five years [39][41] Other Important Information - The company has received multiple awards to advance its quantum computing technologies, including a $5,480,000 grant for chip fabrication technology development [5][67] - The integration of optical signaling is seen as a critical advancement for scaling quantum systems, with expectations for implementation in the next few years [76][80] Q&A Session Summary Question: Progress on chip tiling and timelines - Management confirmed confidence in the chiplet approach to achieve 36 qubits by mid-year and over 100 by the end of 2025, with promising data supporting this strategy [16][17] Question: Updates on the NQI Reauthorization Act - Management indicated bipartisan support for the NQI reauthorization, but noted that it has not yet passed, with funding expected to take additional time to flow after approval [20][46] Question: Details on the DARPA contract - The DARPA Quantum Benchmarking Initiative is critical for achieving utility-scale quantum computing, with specific milestones related to qubit counts and fidelity required to progress to the next phase [25][26] Question: Customer interest in quantum processors - Management noted that while interest exists, the current environment is primarily R&D-focused, with significant sales unlikely until quantum advantage is achieved [39][41] Question: Optical signaling and its importance - Management highlighted the significance of optical signaling for future scalability, with a transition expected from coax to fiber optic cables in the coming years [76][80] Question: Revenue recognition from NQCC and Air Force contracts - Revenue from the NQCC opportunity is expected to be recognized over the next year, while the Air Force contract is projected to contribute approximately $1,000,000 over the upcoming year [81][82] Question: Future milestones with Quanta Computer - The partnership with Quanta is expected to evolve, with Quanta taking on more R&D responsibilities for control systems and hardware components over the next year [90][93]

Financial Data and Key Metrics Changes - Revenues in Q1 2025 were $1,500,000, down from $3,100,000 in Q1 2024, indicating a significant decline [12] - Gross margins decreased to 30% in Q1 2025 from 49% in Q1 2024, primarily due to lower margin revenues from a contract with the UK's NQCC [12] - Total operating expenses (OpEx) increased to $22,100,000 in Q1 2025 from $18,100,000 in the same period last year, driven by salary increases, new hires, and higher stock compensation expenses [13] - The operating loss for Q1 2025 was $21,600,000, compared to $16,600,000 in the prior year [13] - The company recorded a net income of $42,600,000 in Q1 2025, a turnaround from a net loss of $20,800,000 in Q1 2024, largely due to favorable non-cash changes in derivative warrant and earn-out liabilities [14] Business Line Data and Key Metrics Changes - The company is focusing on advancing its utility scale quantum computer concept, collaborating with Riverlane on quantum error correction technology [4][5] - The consortium for the AFOSR award aims to develop chip fabrication technology, with a total award of $5,480,000 [5] Market Data and Key Metrics Changes - The company is actively participating in DARPA's quantum benchmarking initiative, which is critical for advancing utility scale quantum computing [4][28] - The interest in quantum computing remains primarily in R&D, with significant government contracts driving current sales [38][41] Company Strategy and Development Direction - The company is pursuing a chiplet approach to scale qubit counts, aiming for 36 qubits by mid-2025 and over 100 qubits by the end of 2025 [16][18] - The strategy includes enhancing quantum error correction capabilities and integrating digital chip-based technology with existing systems [8][9] - The partnership with Quanta Computer is strategic, focusing on non-GPU hardware components, which will allow the company to concentrate on QPU development [91][94] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the NQI reauthorization bill, which is expected to pass with bipartisan support, although funding may take additional time to materialize [21][48] - The company anticipates that achieving quantum advantage will take at least three to five years, with current efforts focused on R&D and technology milestones [38][42] Other Important Information - The company has closed a $35,000,000 investment from Quanta Computer, which strengthens their strategic collaboration [10][90] - The company is exploring optical signaling as a future technology to improve scalability and reduce thermal load in quantum systems [78][81] Q&A Session Summary Question: Progress on chip tiling and timelines - Management confirmed confidence in the chiplet approach to achieve 36 qubits by mid-2025 and over 100 by the end of 2025, with promising data supporting this strategy [16][17] Question: Updates on the DARPA contract - The DARPA Quantum Benchmarking Initiative is crucial for utility scale quantum computing, with specific milestones related to qubit count and fidelity required to progress to the next phase [26][28] Question: Revenue from DARPA phases - Phase A of the DARPA project includes a $1,000,000 award, with expectations for increased funding in subsequent phases [34] Question: Customer interest in quantum processors - Current interest remains in R&D, with significant government funding impacting the conversion of interest into orders [40][41] Question: Optical signaling and its roadmap - Optical signaling is a key element for future scalability, with expectations to transition from coax to fiber optic cables in the next three to four years [78][81] Question: NQCC revenue recognition timeframe - Revenue from the NQCC opportunity is expected to be recognized over the next year, with a similar timeline for the Air Force contract [84]

Financial Data and Key Metrics Changes - Revenues in Q1 2025 were $1,500,000, down from $3,100,000 in Q1 2024, indicating a significant decline [12] - Gross margins decreased to 30% in Q1 2025 from 49% in Q1 2024, primarily due to lower margins from a contract with the UK's NQCC [12] - Total operating expenses (OpEx) increased to $22,100,000 in Q1 2025 from $18,100,000 in the same period last year, driven by salary increases, new hires, and higher stock compensation expenses [13] - The operating loss for Q1 2025 was $21,600,000, compared to $16,600,000 in the prior year [13] - The company recorded a net income of $42,600,000 in Q1 2025, a turnaround from a net loss of $20,800,000 in the previous year, largely due to favorable non-cash changes in derivative warrant and earn-out liabilities [14] Business Line Data and Key Metrics Changes - The company is focusing on advancing its utility scale quantum computer concept through collaborations and government contracts, which are critical for future sales [4][5] - The NQCC contract is noted for its lower gross margin profile, impacting overall profitability [12] Market Data and Key Metrics Changes - The company has been awarded multiple contracts, including a $1,000,000 award from DARPA for the Quantum Benchmarking Initiative, which is seen as strategically important despite its relatively small monetary value [34] - Interest in quantum computing remains primarily in R&D, with significant reliance on government contracts and academic research funding [41] Company Strategy and Development Direction - The company aims to demonstrate a chiplet approach to scale qubit counts, targeting over 100 qubits by the end of 2025 [16][19] - The strategy includes collaborations with various institutions to enhance quantum error correction capabilities and improve chip fabrication technology [5][6] - The company is optimistic about the NQI reauthorization, which is expected to provide funding for quantum computing initiatives, although delays in passing the bill are noted [22][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the chiplet approach as a means to scale up qubit counts, emphasizing its importance for the entire industry [19] - The company is optimistic about the future of quantum computing, although it acknowledges that achieving quantum advantage is still several years away [39] - Management highlighted the strategic importance of government contracts and collaborations in driving future growth [41][42] Other Important Information - The company has closed a $35,000,000 investment from Quanta Computer, which is expected to strengthen their partnership and reduce R&D costs in non-QPU hardware areas [10][96] - The company is exploring optical signaling as a future technology to improve scalability and reduce thermal load in quantum computing systems [80][84] Q&A Session Summary Question: Progress on chip tiling to reach 36 qubits - Management confirmed that the chiplet approach is critical for scaling qubit counts and expressed confidence in achieving the target by mid-year [16][19] Question: Updates on NQI Reauthorization Act - Management noted bipartisan support for the NQI reauthorization but indicated that it has not yet passed, with funding expected to take additional time to flow [21][50] Question: Details on the DARPA contract - The DARPA Quantum Benchmarking Initiative is crucial for developing utility scale quantum computing, with specific milestones related to qubit fidelity and gate speed [27][90] Question: Customer interest in acquiring processors - Management stated that interest remains high, but funding issues are currently hindering conversion to orders [41][42] Question: Timeframe for the 36 qubit QPU upgrade - Management indicated that the upgrade could occur in the second half of the year, depending on the demonstration of the chiplet approach [51][54] Question: Importance of optical signaling - Management emphasized the significance of optical signaling for future scalability and the transition from coax to fiber optic cables [80][84] Question: Revenue recognition from NQCC and Air Force contracts - Management expects revenue from the NQCC contract to be recognized over the next year, with the Air Force contract contributing approximately $1,000,000 over its three-year term [87]