Rigetti(US:RGTI) ZACKS·2025-11-19 17:31Core Insights - Rigetti Computing (RGTI) has faced significant pressure, with shares dropping 41% over the past month due to a combination of lower revenues and ongoing losses, indicating that commercial traction is still developing despite some technical advancements [1][2][5] - The competitive landscape in the quantum computing sector is intensifying, with other companies like IonQ, D-Wave Quantum, and Quantum Computing Inc. making strides, which raises concerns about Rigetti's near-term execution [3][4] Financial Performance - RGTI shares have declined 40.6% in the past month, the steepest drop among key quantum peers, while IonQ has decreased by 18.1% [4][5] - In 2025, Rigetti is projected to experience a 23.8% decline in revenues, with earnings per share expected to remain negative, declining 88.9% year over year [12][15] - For Q3 2025, Rigetti reported total revenues of $1.9 million, down 18.1% year over year, with an operating loss of $20.5 million [15] Strategic Initiatives - Rigetti continues to secure government and research contracts, which, while not providing immediate recurring revenue, enhance the company's credibility and position in the quantum market [9] - The company is expanding its global partnerships, including collaborations with India's C-DAC and various U.S. academic institutions, which are expected to support future commercial pathways [10] - Rigetti is making progress on its hardware roadmap, with plans to deploy a 150+ qubit system by the end of 2026 and a 1,000+ qubit system by the end of 2027, targeting high fidelity [11] Market Positioning - Rigetti's stock is currently viewed as overvalued, with a price-to-book (P/B) ratio of 22.41X, significantly higher than the industry average of 5.37X [17] - The company remains a speculative investment in the quantum computing space, with ongoing advancements in hardware and partnerships supporting its long-term vision, but near-term revenue softness and losses create uncertainty [20][21]