Key Points Rigetti stock costs $25 today, but could be worth $51 a year from now. If it keeps doubling at that rate, $2,500 invested in Rigetti today could become $10,000 in two years. Rigetti stock is already very expensive today, however, and entirely unprofitable. 10 stocks we like better than Rigetti Computing › Are you looking for a quick way to double your money in the stock market? Would it feel good to be able to say "I own $10,000 in a popular quantum computing stock?" Then, according t ...

Core Insights - Rigetti Computing Inc (NASDAQ:RGTI) experienced a decline of 4.6%, trading at $31.57 after reporting mixed third-quarter results [1] - The company reported adjusted losses of 3 cents per share, which were better than the anticipated losses of 5 cents per share, but revenue of $1.95 million fell short of estimates of $2.2 million [1] Stock Performance - Since reaching a record high of $58.15 on October 14, RGTI has seen a 45% decrease in its stock price [2] - Despite the recent decline, the stock has increased by 107.6% year to date [2] Options Activity - RGTI has seen significant options trading activity, with 30,000 puts and 24,000 calls exchanged [4] - The most popular option is the November 12 put, with new positions being opened at the weekly 11/14 31-strike put [4] - The stock's 50-day put/call volume ratio stands at 3.18, indicating a higher put bias compared to 95% of readings from the past year [4]

Economic and Market Overview - A group of eight moderate Democratic senators has ended a 38-day federal government shutdown, positively impacting pre-market futures [1] - The blue-chip Dow is up 155 points, S&P 500 is up 60 points, and Nasdaq is up 365 points, indicating a strong market response [2] - The 10-year bond yield has increased to 4.12%, while the two-year yield is at 3.60%, reflecting market adjustments [2] - Economic data, including CPI, PPI, and Retail Sales, is expected to be released later this week, which will inform the Federal Reserve's interest rate decisions [3] Company Earnings Reports - Tyson Foods (TSN) reported Q3 earnings of $1.15 per share, exceeding expectations of $0.85, resulting in a positive surprise of 35.3%, although revenue slightly missed at $13.86 billion compared to the expected $13.91 billion [4] - Monday.com (MNDY) posted earnings of $1.16 per share, beating projections of $0.89, with revenues of $316.9 million surpassing the expected $312 million; however, a significant drop in guidance for next-quarter revenues led to a 20% drop in share price [5] - Rigetti (RGTI) is anticipated to report a 37.5% year-over-year earnings growth, with modest revenue growth of 0.42%, and shares are up 120% year to date [6] - Paramount Skydance (PSKY) is expected to report a 6% decline in bottom line year-over-year, with a 1.45% increase in revenues; the outlook will be crucial for investors [7]

Financial Data and Key Metrics Changes - SkyWater reported record Q3 revenues of nearly $151 million, exceeding expectations by more than $9 million [5][24] - The gross margin for Q3 was reported at 24.6%, with significant revenue upside flowing directly to gross profit [25] - Adjusted EBITDA for Q3 was $25.8 million, well above the expected range of $10-$12 million [26] Business Line Data and Key Metrics Changes - The ATS business saw a revenue pull-in of approximately $4 million from Q4 due to program execution timing, with expected Q4 ATS revenues around $50 million [8][22] - Texas wafer services revenue reached nearly $87 million, exceeding expectations by $9 million, primarily due to higher work-in-process wafers post-acquisition [15][24] - Quantum computing-related revenue is expected to exceed 30% growth in fiscal 2025, with four new customer engagements signed since Q2 [6][12] Market Data and Key Metrics Changes - The quantum computing market is experiencing significant investment, with several players announcing large funding rounds, validating the commercial potential of the sector [9][10] - The advanced packaging market is projected to reach nearly $80 billion by 2030, driven by demand in automotive, IoT, 5G, AI, and edge computing [17] Company Strategy and Development Direction - SkyWater aims to restore domestic semiconductor manufacturing capabilities and secure trusted production, positioning itself as a key player in the U.S. innovation infrastructure [18][19] - The acquisition of FAB25 has strengthened SkyWater's competitive position, expanding its scale and diversifying its customer and technology mix [16][15] - The company is focused on leveraging its technology-as-a-service model to support various quantum architectures and drive growth [12][55] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding initial revenue and EBITDA expectations for 2026, with a baseline expectation of at least $600 million in revenue and $60 million in adjusted EBITDA [23][40] - The ongoing government budget dynamics are expected to impact A&D-related ATS revenues, but overall growth in quantum and advanced packaging is anticipated [22][50] - Management highlighted the importance of U.S. leadership in quantum computing and the need for domestic manufacturing capabilities [20][21] Other Important Information - The company plans to hold its first Investor and Analyst Day on March 24 in New York City [4] - Total debt at the end of Q3 was $184 million, reflecting borrowings for the FAB25 acquisition and working capital [29] Q&A Session Summary Question: Can you elaborate on the gross margin expectations for Q4? - Management indicated that Q4 non-GAAP gross margin is expected to be 17%-20%, with a 200 basis point impact from tools revenue [34][37] Question: What are the dynamics behind the revised revenue guidance for next year? - Management noted that higher-than-expected WIP in the fab and strong performance in Q3 and Q4 contribute to confidence in the $600 million revenue target [40][41] Question: How does SkyWater view the current aerospace and defense environment? - Management stated that while funding dynamics remain uncertain, investments in facilities are geared towards the A&D community, positioning SkyWater well for future growth [50][51]

Rigetti's stock was up and down. Here's why.Shares of Rigetti Computing (RGTI 1.96%) fell 13.6% this week, as of 2:06 p.m. on Friday. The drop comes as the S&P 500 and the Nasdaq-100 gained 2.1% and 2.3%, respectively.The quantum computing company's stock had another week of ups and downs. Last week, the stock exploded after JPMorgan announced it intends to invest in the quantum industry as part of its Security and Resiliency Initiative. The stock fell hard on a rumor that Rigetti's CEO, Subodh K. Kulkarni, ...

Core Viewpoint - IonQ (NYSE: IONQ) has emerged as a significant player in the quantum computing sector, offering investors a unique opportunity to engage with a speculative yet promising market trend [1] Company Overview - IonQ is positioned as a pure-play investment option in the quantum computing space, which is characterized by high speculation and intrigue [1]

Core Insights - Quantum Computing Inc. has significantly strengthened its balance sheet, transforming it into a growth asset with pro forma cash reaching approximately $824 million, positioning the company among the largest financial reserves in the quantum sector [1] Financial Health - The company has successfully executed back-to-back capital raises, enhancing its liquidity and providing a substantial war chest for future investments and growth initiatives [1] - The strong balance sheet indicates sustainable revenue growth and efficient cash flow management, which are critical for long-term survival in the competitive landscape of quantum computing [1] Market Positioning - Quantum Computing Inc. benefits from a strong technology moat and first-mover advantage, which are essential for capturing market share in high-growth industries [1] - The company is positioned to leverage network effects that can drive exponential growth, further solidifying its competitive edge [1] Investment Strategy - The investment methodology focuses on identifying high-conviction opportunities with a balanced portfolio construction that includes core positions, growth bets, and speculative investments [1] - Emphasis is placed on risk management, ensuring a strong margin of safety while maximizing long-term compounding potential [1]

Core Insights - D-Wave Quantum's shareholders have seen their investment more than quadruple over the last three years, with a return of 313.5% compared to the S&P 500's 79.9% [1][4][6] Performance Analysis - D-Wave Quantum's share price has increased by over 216% in 2023 alone, significantly outperforming the S&P 500's gain of 13% [2][4] - A $1,000 investment in D-Wave three years ago would now be worth $4,135, while the same investment in the S&P 500 would be worth $1,799 [6] Market Position - D-Wave Quantum's market capitalization is approximately $9 billion, categorizing it as a mid-cap company, which makes it relevant to benchmarks like the Nasdaq Composite and S&P MidCap 400 [5] Financial Health - The company reported a loss of $167.3 million in Q2, which is a significant increase from the $17.8 million loss in the same quarter the previous year [7] - D-Wave's revenue for the latest period was only $3.1 million, indicating limited financial performance [7][8] - The stock is valued at a price-to-sales ratio of 298, reflecting a high valuation relative to its revenue [8]

Core Viewpoint - D-Wave Quantum's stock experienced a significant increase due to new AI developments, but its high valuation compared to limited revenue raises concerns about the sustainability of this optimism [1][5][6] Group 1: Company Developments - D-Wave announced the launch of a suite of new AI-focused development tools aimed at enhancing quantum artificial intelligence and machine learning innovation [2][3] - The new offerings include an open-source toolkit and a demo that facilitate the integration of quantum computers into modern machine learning architectures [3] Group 2: Financial Metrics - D-Wave's current market capitalization exceeds $5.7 billion, while its projected revenue for 2024 is less than $9 million, indicating a significant disparity between valuation and actual earnings [5] Group 3: Industry Perspective - Despite the excitement surrounding quantum computing, there are doubts about the technology's maturity and its potential to generate substantial revenue in the near future [6] - D-Wave's services combine quantum and classical computing, but the company provides limited details on the reliance on each type [6] Group 4: Investment Considerations - Investors with high risk tolerance may consider investing in D-Wave, but it is advised to wait for more reasonable valuations and to diversify investments across multiple quantum stocks due to uncertainty in long-term success [7]

Core Insights - Rigetti Computing (RGTI) has a price-to-book (P/B) ratio of 17.07X, significantly higher than the Zacks Internet Software industry average of 6.55X, indicating strong investor optimism about its potential in quantum computing [1][9] - The elevated valuation reflects a broader trend of high multiples in the early-stage quantum ecosystem, with peers like IonQ (14.3X) and D-Wave Quantum (20.9X) also trading at high valuations [2][3] - Rigetti's differentiated offerings, such as pulse-level control and proprietary superconducting architecture, attract investors seeking innovation, although current financial metrics show limited revenue and margins [3][6] Valuation and Financial Performance - Rigetti's P/B ratio of 17.07 suggests that investors are betting on future growth, despite only reporting $1.5 million in revenues for Q1 2025 and expecting an 18.6% decline in sales for the year [7][13] - The company's revenue is primarily derived from short-term, project-based contracts, leading to a lack of predictable, recurring income, which raises concerns about future cash flow visibility [11] - Rigetti's shares have underperformed compared to the Zacks Internet Software industry and peers, with a year-to-date loss of 20.2%, while IBM and D-Wave Quantum have gained 29% and 76.3%, respectively [12] Future Outlook - Rigetti's ambitious technical roadmap includes launching a 36-qubit multi-chip module and a 100+ qubit system by the end of 2025, with a long-term goal of a 336-qubit processor by 2026 [5][10] - The company's future success hinges on its ability to translate technical advancements into commercial traction, as current fundamentals do not support the high valuation [10][15] - Investors may consider monitoring Rigetti closely for progress in executing its roadmap and achieving sustained business performance before making investment decisions [4][16]