Why Did Rigetti Computing Stock Fall 13.9% This Week?

Core Viewpoint - Rigetti Computing's stock has experienced significant volatility, with a notable decline of 13.6% this week despite gains in broader market indices like the S&P 500 and Nasdaq-100 [1][2]. Stock Performance - Rigetti's stock fluctuated dramatically, initially surging after JPMorgan's announcement of investment intentions in the quantum industry, but later plummeting due to rumors regarding the CEO's equity sales [2][4]. - The CEO, Subodh K. Kulkarni, sold a substantial portion of his stake but retains approximately 0.8% in stock options, which contributed to the stock's decline [4]. - Following a report about potential equity positions from the U.S. Department of Commerce, Rigetti shares rose again, but the unverifiable nature of the report led to a subsequent retreat in stock price [4]. Market Data - Current stock price of Rigetti is $38.82, with a market capitalization of $13 billion [5]. - The stock's trading range for the day was between $38.81 and $43.46, while the 52-week range has been from $1.06 to $58.15 [5]. - The trading volume for Rigetti was 2.8 million, with an average volume of 75 million [5]. Valuation Concerns - The quantum computing sector, particularly pure-play stocks like Rigetti, has seen inflated valuations driven by hype, leading to skepticism about the sustainability of these prices [6]. - The company is advised to be avoided until valuations align more closely with realistic expectations [6].