Rigetti Computing: How RGTI Stock Falls To $2?

Core Viewpoint - Rigetti Computing's stock has experienced a dramatic increase of 2,000% over the past year, driven by a combination of factors including heightened interest in quantum computing and the AI boom [3][4] Group 1: Market Dynamics - The surge in Rigetti's stock price is attributed to intense hype surrounding quantum computing and significant capital inflow into the sector, which has positively influenced investor sentiment [3] - Rigetti has become a sought-after stock due to the limited number of publicly traded quantum companies, attracting large institutional investors and retail investors alike [4] Group 2: Current Challenges - Despite the excitement around quantum computing, widespread commercial adoption is still years away, with current applications primarily focused on simulating chemistry and physics [5] - Rigetti's fundamentals indicate that while there is potential for future growth, there are significant risks associated with its speculative nature [6] Group 3: Historical Context - The stock has previously faced severe declines, exemplified by a 96% drop from $9 to $0.40 in 2022, highlighting the volatility associated with speculative stocks [8][10] - Historical performance suggests that a return to sub-$2 levels is possible, especially given the current speculative setup and weak fundamentals [10] Group 4: Competitive Landscape - Major tech companies like Alphabet, Honeywell, and IBM are making significant advancements in quantum computing, raising concerns about Rigetti's ability to compete, especially with Honeywell's recent $600 million equity raise at a $10 billion valuation [14] - The ongoing cash burn and previous capital raises of $350 million indicate potential dilution risks for Rigetti, which could further impact investor sentiment [14]