Rigetti Computing Stock Plunged 42% Last Month. Here's Why.

Core Insights - Rigetti Computing's stock experienced a significant decline of 42.2% in November 2025, erasing the previous month's gains of 48.6% and resulting in a total loss of 14.2% from September 30 to November 29 [1][2] Financial Performance - In Q3 2025, Rigetti reported revenues of $1.95 million, an 18% decrease year-over-year, while net losses surged from $14.8 million to $201.0 million [2] - The company burned $19.7 million in free cash flow during the quarter, with a notable $149 million non-cash expense related to derivative warrant liabilities impacting the bottom line [3][2] - Rigetti's research and development costs amounted to $15.0 million, representing the largest expense on its income statement [3] Market Position and Investor Sentiment - Investors remain skeptical, viewing Rigetti more as an early-stage research entity rather than a serious commercial player in quantum computing [4] - The stock's decline accelerated following the disappointing earnings report, with a 28.3% drop occurring just three days later [4] - Rigetti's stock has seen a remarkable increase of 729.3% over the past 52 weeks, despite the recent downturn [3] Industry Context - The quantum computing sector is characterized by high investor expectations and volatility, similar to trends observed in cannabis stocks and cryptocurrencies [6][7] - Rigetti is developing a comprehensive suite of quantum computing solutions, which may provide a competitive edge over peers focusing on narrower segments [8] - The company has a substantial cash cushion of $559 million, allowing it to sustain operations despite current losses [8] Long-term Outlook - The future of Rigetti remains uncertain, with comparisons drawn to past high-flying stocks that ultimately faced significant declines [9][10] - While Rigetti may experience sporadic growth, the overall price trend is expected to be negative in the near term [10]