Industry Overview - Quantum computing has the potential to revolutionize industries such as drug discovery and materials science by performing calculations exponentially faster than traditional computers [2][4] - Analysts at Boston Consulting Group predict that quantum computing technology could create up to $850 billion in economic value by 2040, indicating significant future growth potential [4] Company Profile: Rigetti Computing - Rigetti Computing, founded in 2013, went public in 2022 through a merger with a special-purpose acquisition company (SPAC) and adopts a "picks-and-shovels" approach by designing and fabricating quantum computing processors [5] - The company operates Fab-1, which is claimed to be the only dedicated quantum computing fabrication facility in the world, potentially giving it a competitive edge in the industry [5] - Rigetti offers Quantum Cloud Services (QCS), integrating its processors with traditional computing infrastructure, allowing businesses to utilize quantum computing power without the need for expensive hardware [6][7] Financial Performance - In the third quarter, Rigetti's revenue declined approximately 23% year-over-year to $2.4 million, while operating losses increased from $16.8 million to $17.3 million [8] - The company's significant research and development spending of $12.8 million in the third quarter is a major factor contributing to its cash burn [9] - Despite ongoing innovation and plans to introduce a new system architecture in 2025, the market may not be ready for widespread adoption of quantum computing technology, which could delay profitability [9][10]

Company Performance - Rigetti Computing, Inc. (RGTI) closed at $13.83, reflecting a +0.8% change from the previous day, outperforming the S&P 500's daily gain of 0.39% [1] - Over the last month, the company's shares have decreased by 25.39%, underperforming the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 1.7% [1] Earnings Report Expectations - Rigetti Computing, Inc. is projected to report earnings of -$0.08 per share, indicating a year-over-year growth of 11.11% [2] - The consensus estimate forecasts revenue of $2.4 million, representing a 28.99% decline compared to the same quarter of the previous year [2] Analyst Estimates and Stock Performance - Recent adjustments to analyst estimates for Rigetti Computing, Inc. are being monitored, as positive revisions may indicate optimism about the company's business outlook [3] - The Zacks Rank system, which incorporates estimate changes, has a track record of success, with 1 stocks delivering an average annual return of +25% since 1988 [4][5] - Rigetti Computing, Inc. currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining steady over the past month [5] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Company Performance - Rigetti Computing, Inc. closed at $13.72, reflecting a +1.86% change from the previous session, outperforming the S&P 500's daily gain of 0.72% [1] - The stock has experienced a significant decline of 30.96% over the past month, contrasting with the Computer and Technology sector's loss of 1.35% and the S&P 500's gain of 1.02% [1] Earnings Projections - The upcoming EPS for Rigetti Computing is projected at -$0.08, indicating an 11.11% increase compared to the same quarter last year [2] - Quarterly revenue is estimated at $2.4 million, which represents a decrease of 28.99% from the year-ago period [2] Analyst Estimates - Changes in analyst estimates for Rigetti Computing are crucial as they reflect the evolving nature of near-term business trends [3] - Positive estimate revisions indicate analyst optimism regarding the company's business and profitability [3] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 stocks averaging an annual return of +25% since 1988 [5] - Rigetti Computing currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [5] Industry Overview - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 66, placing it in the top 27% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Core Viewpoint - Rigetti Computing, a quantum computing company, has shown significant stock recovery after a tumultuous period, but it still faces challenges in proving its long-term viability and growth potential in the quantum computing market [2][3][11]. Company Overview - Rigetti Computing went public via a SPAC merger on March 2, 2022, with an initial stock price of $9.75, which later fell to an all-time low of $0.38 by May 3, 2023, due to missed estimates and leadership changes [2][3]. - The company's stock has since rebounded to approximately $13.50, indicating a substantial recovery for investors who bought at the low [3]. Quantum Computing Technology - Quantum computers utilize quantum bits (qubits) to store data, allowing for simultaneous representation of zeros and ones, which enables faster processing of large data sets compared to traditional computers [4]. - Despite their advantages, quantum computers are currently larger, more expensive, and prone to errors, limiting their use primarily to research institutions and government agencies [5][6]. Product Development and Market Position - Rigetti designs and manufactures its own quantum processing units (QPUs) and offers a cloud infrastructure for quantum computing applications, positioning itself as a "full stack" player in the market [7]. - The company launched its Novera QPU, a 9-qubit commercial version, priced at $900,000, and received orders from notable customers [8]. Future Plans and Revenue Projections - Rigetti plans to introduce a modular quantum computing system this year and aims to deploy a nonmodular system with over 100 qubits by the end of 2026, along with a more powerful 336-qubit system in the coming years [10]. - Revenue projections indicate growth from $11 million in 2024 to $35 million in 2026, reflecting a 127% increase, although the company currently has a high enterprise value of $3.7 billion, trading at 105 times its projected 2026 sales [11]. Market Outlook - The quantum computing market is expected to grow at a CAGR of 34.8% from 2024 to 2032, with Rigetti potentially generating $120 million in revenue by 2032 if it matches market growth [12]. - However, caution is advised as the CEO of Rigetti has suggested that investors temper their near-term expectations, and industry leaders like Nvidia's CEO have indicated that practical quantum computers may still be decades away [12].

Core Viewpoint - The article discusses the lack of investment positions held by Parkev Tatevosian and The Motley Fool in the mentioned stocks, emphasizing their disclosure policy and potential compensation for promoting services [1] Group 1 - Parkev Tatevosian, CFA, has no position in any of the stocks mentioned [1] - The Motley Fool also has no position in any of the stocks mentioned [1] - Parkev Tatevosian is an affiliate of The Motley Fool and may receive compensation for promoting its services [1]

Core Insights - The article discusses the investment landscape and highlights the importance of understanding market dynamics and company fundamentals [1] Company Analysis - The analysis emphasizes the need for investors to evaluate companies based on their financial health, growth potential, and market position [1] - It suggests that companies with strong fundamentals are more likely to withstand market volatility and provide long-term returns [1] Industry Trends - The article notes that certain industries are experiencing significant changes due to technological advancements and shifting consumer preferences [1] - It highlights the importance of staying informed about industry trends to identify potential investment opportunities [1]

Core Viewpoint - The article discusses the lack of positions held by Parkev Tatevosian, CFA, and The Motley Fool in the mentioned stocks, emphasizing their disclosure policy and potential compensation for promoting services [1] Group 1 - Parkev Tatevosian has no position in any of the stocks mentioned [1] - The Motley Fool also has no position in any of the stocks mentioned [1] - The disclosure policy of The Motley Fool is highlighted, indicating transparency in their operations [1]

Company Analysis - Rigetti Computing (NASDAQ: RGTI) has experienced a significant stock price surge, increasing by more than 1,500% in 2024 [1] Industry Analysis - The quantum computing field is a focus of exploration, with Rigetti Computing being a key player in this sector [1] Investment Background - The analyst has a strong IT background and seven years of experience in the U S stock market, managing a family portfolio [1] - The analyst emphasizes a deep understanding of risk and reward, particularly in technology stocks, while also exploring diverse sectors for investment opportunities [1]

Core Insights - The article discusses the investment landscape and the potential opportunities within the market, emphasizing the importance of thorough research and analysis before making investment decisions [1] Company Analysis - The article highlights that Parkev Tatevosian, CFA, has no current positions in any of the stocks mentioned, indicating a neutral stance on specific investments [1] - The Motley Fool, as an organization, also has no positions in the stocks discussed, reinforcing the impartiality of the analysis presented [1] Industry Overview - The disclosure policy of The Motley Fool is mentioned, which outlines the potential for compensation when promoting services, suggesting a need for transparency in investment recommendations [1] - The article implies that opinions expressed are independent and not influenced by external factors, which is crucial for maintaining credibility in investment analysis [1]

Group 1: Rigetti Computing, Inc. (RGTI) - RGTI shares increased by 42.2% in the last trading session, closing at $13.98, with significantly higher trading volume compared to normal sessions [1] - The stock had previously experienced a 10.3% loss over the past four weeks, indicating a strong rebound [1] - RGTI is benefiting from an expanding clientele and growing influence in the quantum computing sector [1] Group 2: Financial Expectations - RGTI is expected to report a quarterly loss of $0.08 per share, reflecting an 11.1% year-over-year change, with revenues projected at $2.4 million, down 29% from the previous year [2] - The consensus EPS estimate for RGTI has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without earnings estimate revisions [3] Group 3: Industry Context - RGTI is part of the Zacks Internet - Software industry, where Asana, Inc. (ASAN) also operates, with ASAN's stock rising 5.6% to $20.42 in the last trading session [3] - ASAN's consensus EPS estimate has remained unchanged at -$0.01, representing a 75% improvement from the previous year, and it currently holds a Zacks Rank of 2 (Buy) [4]