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Down 23%, Should You Buy the Dip on Rigetti Computing Stock?
RGTIRigetti(RGTI) The Motley Fool·2025-05-17 08:17

Group 1: Industry Overview - Quantum computing is attracting significant investor interest, with the market potentially worth up to 170billionby2040accordingtoBostonConsultingGroup[3]−Themassadoptionofquantumcomputingremainsspeculative,withlimitedpracticalapplicationscurrentlyavailable[4][5]Group2:CompanyPerformance−RigettiComputing′srevenuehasdeclined,reporting170 billion by 2040 according to Boston Consulting Group [3] - The mass adoption of quantum computing remains speculative, with limited practical applications currently available [4][5] Group 2: Company Performance - Rigetti Computing's revenue has declined, reporting 1.5 million in the first quarter, down nearly 52% year-over-year [6] - The company's full-year 2024 revenue is projected at 10.8million,adecreaseof1010.8 million, a decrease of 10% from the previous year [7] - Rigetti's management indicated that significant commercial sales are not expected for another three to five years [7] Group 3: Financial Position - Rigetti has 237.7 million in cash and cash equivalents, providing operational runway despite declining sales [8] Group 4: Stock Valuation - Rigetti's shares have a price-to-sales multiple of 197, indicating a high valuation relative to its sales [9] - The stock has risen over 800% in the past year, leading to concerns about its sustainability given the current sales decline [9][10]