Up by About 2,000% in the Past Year, Is Rigetti Computing Stock a Buy?

Core Insights - Quantum computing has the potential to revolutionize various industries, but achieving practical, reliable, and cost-effective solutions is still years away [2][5][6] - Rigetti Computing, a quantum computing startup, has seen its stock price increase by approximately 2,000% over the past year, but it has recently experienced a significant decline of about 44% from its peak [4][11] - The company currently has weak fundamentals, with revenue of only $1.8 million against operating costs of $20.4 million, indicating a substantial cash burn [7][11] Industry Overview - Analysts predict that commercially viable quantum computing may not be realized until 2040 or later, despite optimistic forecasts from major tech companies like Alphabet [1][5] - The technology is still considered speculative and uncertain, with significant challenges related to its underlying physics that contribute to high error rates [2][6] - Quantum computing could create trillions of dollars in shareholder value if successfully developed, impacting fields such as drug discovery, cryptography, and materials science [2] Company Analysis: Rigetti Computing - Rigetti's operational results are concerning, as it is in a "pre-growth" phase with an addressable market that has not fully materialized [8][11] - The company went public through a reverse merger with a SPAC, which typically carries higher risks compared to traditional IPOs [9][10] - Despite its current challenges, Rigetti is positioned as an early mover in the quantum computing space by developing its own quantum chips and processors, warranting attention from investors [12]