Why Did Rigetti Computing Stock Plunge This Week?

Core Viewpoint - The value of quantum computing stocks, particularly Rigetti Computing, has significantly declined from their previous highs, reflecting a correction from overexuberance in the market [1][4]. Group 1: Stock Performance - Rigetti Computing's shares have dropped approximately 75% from their peak last fall, with a recent decline of 15.4% as of Friday morning [1][2]. - The company's market capitalization is currently nearly $5 billion, down from over $18 billion last fall, despite reporting only $1.9 million in third-quarter revenue [3]. Group 2: Analyst Insights - TD Cowen analyst Krish Sinkar downgraded Rigetti stock, suggesting that investors may have overestimated the company's potential and that forward estimates for 2027 are overly optimistic [2][4]. - Rigetti management anticipates that significant demand and value for quantum computing will not materialize until after 2030, indicating a longer timeline for potential returns [4]. Group 3: Market Sentiment - The current decline in Rigetti's stock price is seen as a correction from the previous market enthusiasm, with investors likely needing more time to identify successful companies in the quantum computing sector [4].