Key Points Rigetti Computing stock defied the market's bearish momentum today. Rigetti stock has gotten a big boost from analyst coverage earlier this week. Some investors may be betting that quantum computing tech will play a rising role in the competition between the U.S. and China. 10 stocks we like better than Rigetti Computing › Rigetti Computing (NASDAQ: RGTI) stock managed to close Thursday's trading with strong gains despite moderately bearish momentum for the broader market. The company's ...

Core Viewpoint - IonQ is a speculative investment in the quantum computing sector, with significant potential for growth but also substantial risks due to its current lack of a viable business model [2][3][6]. Company Overview - IonQ has experienced a remarkable stock increase of 479% over the past year, but its growth has stalled after reaching an all-time high at the beginning of 2025 [2]. - The company currently has a market capitalization of approximately $12 billion, primarily generating revenue from research contracts [5]. Market Potential - The quantum computing market is expected to undergo significant changes by 2030, with IonQ's CEO projecting profitability and sales nearing $1 billion by that year [5]. - By 2035, IonQ anticipates an $87 billion market opportunity, with broader economic value from quantum computing potentially reaching $880 billion by 2040 [5]. Technology Approach - IonQ utilizes trapped ion qubits, which can be created at room temperature and provide more accurate results compared to competitors that use superconducting qubits [7][8]. - While IonQ's processing speeds are not as fast as those of its competitors, the emphasis on accuracy and cost may appeal to future consumers of quantum computing technology [8]. Investment Considerations - Given the high-risk nature of IonQ's stock, it is suggested that investments should be limited to a small portion of a portfolio, ideally no more than 1% [9]. - The potential for IonQ to become a major player in quantum computing is compared to Nvidia's rise in the AI sector, highlighting the transformative possibilities of its technology [9].

Core Viewpoint - Rigetti Computing's stock is experiencing a significant decline due to disappointing Q2 earnings and broader economic concerns affecting investor sentiment [1][2][5]. Financial Performance - Rigetti reported Q2 revenue of $1.8 million, which is a decrease of nearly 42% year-over-year [2]. - The company's net income fell nearly 220%, resulting in a loss of approximately $40 million for the quarter [2][3]. Market Valuation - Despite the poor financial performance, Rigetti's market capitalization remains close to $5 billion, indicating a substantial disconnect between its financials and market valuation [3]. Economic Context - Recent economic data, including a slowing job market and higher-than-expected inflation, is contributing to the decline of riskier stocks like Rigetti [5]. - Investors are increasingly cautious as macroeconomic conditions worsen, leading to a sell-off in high-risk investments [1][5]. Technological Outlook - Although Rigetti provided some positive updates regarding its operational and technological advancements, the industry may still be years or decades away from achieving viable quantum computing solutions [6].

Group 1 - Rigetti Computing, Inc. has shown clear progress in its technology following the release of Q2 2025 earnings [1] - The company operates a "full-stack" setup, which is significant for its quantum computing capabilities [1] Group 2 - The focus of the research is primarily on small- to mid-cap companies, which are often overlooked by investors [1] - Occasionally, larger-cap companies are analyzed to provide a broader perspective on equity markets [1]

Group 1: Company Overview - D-Wave Quantum is experiencing significant growth, with its stock price more than doubling in 2025 due to rising interest in quantum computing [1] - The company has established itself as a leader in quantum computing, providing technology that is already being utilized by major clients such as Ford Otosan, Accenture, BASF, Lockheed Martin, Mastercard, and Pattison Food Group [2] - D-Wave's revenue increased by 509% year over year in Q1 2025, indicating strong momentum as new Advantage systems are sold and more use cases are identified [3] Group 2: Financial Position - D-Wave Quantum reported a cash balance of $304.3 billion at the end of Q1, which management believes is sufficient to fund operations until the company reaches profitability [4] Group 3: Market Opportunity - The quantum computing market is projected to reach $198 billion by 2040, presenting a substantial growth opportunity for D-Wave Quantum [3] Group 4: Challenges and Risks - D-Wave Quantum remains unprofitable, which raises concerns about the need for potential dilutive stock offerings to raise additional capital [5] - The company's high price-to-sales ratio of over 192 makes it difficult to justify its valuation unless growth continues at a rapid pace [6] - D-Wave faces intense competition from smaller players like IonQ, Quantum Computing Inc., and Rigetti Computing, as well as from tech giants such as Google, Amazon, IBM, and Microsoft [7] - There are uncertainties regarding the technological feasibility of quantum computing, which could delay the realization of its potential and impact the current momentum in the sector [8]

Group 1: Carvana - Carvana has shown significant recovery after a debt restructuring in 2023, increasing total retail units sold and improving per-vehicle gross profit while reducing per-vehicle expenses [3][4] - The company aims to sell 3 million retail vehicles annually within 5 to 10 years, requiring a sixfold increase in its current retail unit annual run rate [4] - Carvana's current stock valuation is around 110 times earnings, which are inflated by gains on certain warrants, necessitating substantial growth in unit sales and profit margins to justify this valuation [5][6] - The used car market is cyclical and sensitive to economic conditions, raising concerns about Carvana's aggressive financing strategies, which could lead to vulnerabilities in an economic downturn [6][7] Group 2: IonQ - IonQ operates in the speculative quantum computing sector, which is seen as a potential future technology but faces significant competition from established players like IBM and Alphabet [8][9] - Commercially viable quantum computing systems are estimated to be four to five years away, with IonQ needing to survive until the technology matures [9] - IonQ recently announced a $1 billion equity offering, providing financial resources despite reporting a free cash flow loss of nearly $130 million in 2024 and a net loss of $332 million [10] - With only $43 million in revenue last year and a market capitalization exceeding $12 billion, IonQ represents a high-risk investment in the quantum computing space [11]

Core Viewpoint - Wall Street is increasingly optimistic about Rigetti Computing, a leader in quantum computing, as recent strategic and financial moves have improved its outlook significantly [2][3][11] Financial Health - Rigetti completed a $350 million stock offering in June 2025, enhancing its cash position to approximately $575 million with no debt [4][11] - This financial strength provides a long operational runway, allowing the company to focus on technology development without immediate fundraising pressures [5][13] Analyst Ratings - Cantor Fitzgerald initiated coverage on Rigetti with an Overweight rating and a price target of $15.00, joining at least five other firms with a unified Buy rating [2][3] - The average 12-month price target from analysts is $14.20, indicating potential upside from the current price [3] Strategic Partnerships - Rigetti is building a robust ecosystem of partnerships, including a foundational manufacturing collaboration with Quanta Computer to tackle complex quantum systems [6] - The company is involved in significant projects like the DARPA Quantum Benchmarking initiative and is leading efforts to advance quantum error correction in the UK [7][8] Market Position - Despite a short interest of approximately 20%, indicating some bearish sentiment, the strong analyst consensus and institutional investment inflows counter this view [9][10] - Rigetti's strategic ecosystem and partnerships provide a credible roadmap for commercialization, positioning the company favorably for long-term success [10][11]

Core Insights - Rigetti Computing Inc (NASDAQ:RGTI) is experiencing a significant stock surge of 8.3%, reaching $12.27, following Cantor Fitzgerald's initiation of coverage with an "overweight" rating and a price target of $15, highlighting the potential of quantum computing technology as a highly coveted milestone [1] - Despite a strong start in 2024, Rigetti's stock is down 21% year-to-date, with the 100-day moving average providing support and the stock approaching a recent ceiling at $12 [2] - The options market shows a potential shift in sentiment, with a 10-day put/call volume ratio of 1.19 indicating higher bearish sentiment compared to the past year, which could lead to positive momentum for the stock [3] - Call options are currently favored, with 49,000 calls traded, significantly higher than the average intraday volume, and the July 15 call being the most popular [4]

Group 1 - IonQ Inc announced the acquisition of Oxford Ionics for $1.075 billion in a cash-and-stock deal, resulting in a 4.1% increase in its stock price to $40.61 [1] - The stock had previously reached a record high of $54.68 on January 7, but has since cooled off, with a current year-over-year increase of 409%, although it is down 4.4% for 2025 [2] - There is significant short interest in IonQ, with 40.33 million shares sold short, representing 16.9% of the available float, indicating potential for a short squeeze [3] Group 2 - Options trading activity has surged, with 27,000 calls traded today, which is double the typical volume, compared to only 4,543 puts, indicating bullish sentiment [4] - The most active options contract is the weekly 6/13 42-strike call, with positions being sold to open [4]

Core Viewpoint - The Schall Law Firm is investigating D-Wave Quantum Inc. for potential violations of securities laws, focusing on misleading statements and undisclosed information regarding the company's technology and future roadmap [1][2]. Group 1: Investigation Details - The investigation centers on whether D-Wave issued false or misleading statements and failed to disclose critical information to investors [2]. - A report by Kerrisdale Capital, published on April 29, 2025, questions the credibility of D-Wave's technology, suggesting it is more of a market strategy than a genuine quantum computing advancement [2]. - The report also claims that D-Wave has not developed a viable future roadmap and that its technology relies on traditional computing methods rather than true quantum computing [2]. Group 2: Legal Representation - The Schall Law Firm encourages shareholders who have suffered losses to participate in the investigation and offers free consultations regarding their rights [3]. - The firm specializes in securities class action lawsuits and shareholder rights litigation, representing investors globally [3].