EARNINGS ALERT: CRWV & RGTI

Earnings Summary for Rigetti Computing - Rigetti Computing reported a third quarter operating loss of $20.5 million, exceeding the estimated loss of $20.1 million, with revenue of $1.9 million, which was below the expected $2.17 million [1][2] - The company also reported a loss per share of $0.62, significantly worse than the estimated loss of $0.05 [2][12] - The revenue figures are considered small, primarily derived from government contracts and consulting work [4][5] Market Reaction and Future Outlook - Despite the significant misses in earnings and revenue, the stock did not experience violent trading movements, with a downside of about 1.5% [2][3] - Investors view Rigetti as a potential long-term player in the quantum computing space, akin to Nvidia, but acknowledge the near-term challenges [5][6] - Any material breakthroughs or new contracts, especially from the U.S. government, could serve as catalysts for stock price recovery [6][9] Industry Context and Competitive Landscape - The quantum computing sector is still in its early stages, with significant capital flowing into speculative trades based on anticipated revolutionary technology [8][9] - Rigetti is competing with major players like Intel, IBM, and Google, which may impact its market positioning [12][13] - The company is focusing on building relationships with the Department of Defense, which could provide a strategic advantage [13][14] Earnings Summary for Core - Core reported a third quarter loss per share of $0.22, better than estimates ranging from $0.39 to $0.57 [14] - The net loss was $110.1 million, significantly better than the estimated loss of $299.6 million [14] - Revenue for the quarter was $1.36 billion, exceeding the expected $1.29 billion [15] Operational Insights and Market Dynamics - Core's backlog of orders as of September 30 was $55.6 billion, missing the street's expectation of $60 billion [17] - The company is investing heavily in building data centers and leasing Nvidia chips, which raises concerns about potential overcapacity in the future [18][19] - Analysts express concerns about the sustainability of business models for companies like Core that rely on overcapacity from hyperscalers [25][26]