Down 48%, Should You Buy the Dip on Rigetti Computing?

Core Insights - Rigetti Computing's stock has seen a significant decline, trading 48% below its peak in January 2025 after a surge at the end of 2024 [1] - The company operates in the quantum computing sector, utilizing superconducting materials and a hybrid approach to integrate quantum and digital computing [3][4] - Despite a promising breakthrough in quantum error correction, the stock's gains were not sustainable, with Wall Street adopting a cautious stance [5][7] Company Overview - Founded in 2013, Rigetti Computing began offering quantum computing services in 2017, relying on costly superconducting materials [3] - The company aims to provide integrated solutions that combine quantum chips and traditional software for specific workloads [4] Financial Performance - Rigetti reported $10.8 million in revenue for 2024, a decrease from $12 million in 2023, while net losses increased from $75 million to $201 million [10] - The company incurred significant expenses, including $50 million on R&D and $24 million on SG&A, against its limited sales [10] Competitive Landscape - Rigetti faces competition from major players like Google, IBM, and Nvidia, which are also developing quantum computing technologies [11] - The recent advancements in quantum error correction were achieved by Google Quantum AI, highlighting the competitive pressure on Rigetti [11] Stock and Investment Dynamics - The company has raised capital through stock sales, leading to a 61.7% increase in share count over the past year, resulting in dilution for existing investors [12] - Despite a 52-week return of over 1,100%, the stock has experienced significant volatility, with a 76% drop in value at one point [14][17]