Quantum(US:QMCO) The Motley Fool·2025-12-20 08:30Group 1: Hedge Fund Activity - Three hedge fund billionaires bought small positions in Rigetti Computing while selling shares of Amazon in the third quarter [1] - All three hedge fund managers outperformed the S&P 500 over the past three years, indicating their investment decisions may be worth noting [2] - Israel Englander sold 787,900 shares of Amazon, Ken Griffin sold 1.6 million shares, and Steven Schonfeld sold 253,700 shares, reducing their positions significantly [9] Group 2: Amazon Overview - Amazon holds a strong position in three industries: the largest online marketplace in North America and Western Europe, the largest retail advertiser globally, and the largest public cloud provider through AWS [4] - The company is leveraging artificial intelligence to enhance sales and efficiency, with its AI shopping assistant expected to generate $10 billion in sales this year [5] - Amazon's revenue increased by 13% to $180 billion in the third quarter, with operating income rising 25% to $21.7 billion, indicating improved profitability [7] Group 3: Rigetti Computing Overview - Rigetti Computing specializes in superconducting quantum computing, with a focus on developing qubits for quantum computers [11] - The company reported revenue of $5 million but a net loss of $198 million year-to-date, indicating significant financial challenges [12] - Rigetti's valuation is extremely high at 860 times sales, with a 71% increase in outstanding shares over the past year due to stock issuance [13] Group 4: Investment Rationale - The hedge fund managers' investment in Rigetti may be driven by momentum, with the potential for quick profits rather than long-term conviction [15] - Rigetti benefits from vertical integration, controlling much of its supply chain, which may provide cost efficiencies [14]