Recently, Rigetti Computing (RGTI) has made a name for itself as part of the growing swell toward quantum computing. And it looks to establish that name further with plans to appear at the 27th Annual Needham Growth Conference. But these plans did not spare it from a massive downturn, as shares plunged nearly 26% in Monday afternoon’s trading.
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Rigetti will be sending its CEO, Dr. Subodh Kulkarni, to join in a “fireside chat” at the conference. Kulkarni’s portion will run from 11:45 AM to 12:25 PM Eastern, on January 14, 2025. Interested viewers can register for a webcast that runs in that period, and a replay will be available for about the next six months to follow.
While just what Kulkarni will be presenting during the event is as yet unknown, we know that Rigetti has been working on quantum computing for quite some time. It rolled out its Novera system—a nine qubit quantum computer—back in 2023. This system could be plugged into available cryogenic systems, as well as control systems, to help support research and development operations in the quantum computing community.
Today’s Rout
But Rigetti took it on the chin today, despite having little news to connect to such a sudden downturn. A report from CNBC noted that Rigetti was caught up in a “popular tech stock washout” that saw several other tech sector issues take hits of various dimensions.
The report noted that “investors took profits on their 2024 winners” and also rebalanced their portfolios to “dump…the more speculative names in an environment of rising interest rates.” With bond yields on the rise—the 10-year treasury hit levels not seen since late 2023 just last week—and further rate cuts in doubt thanks to a solid jobs report, speculative tech stocks like Rigetti may have some trouble going forward. And with the Rosen Law Firm taking aim at Rigetti over “materially misleading information,” there may be more trouble to come.
Is Rigetti a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RGTI stock based on six Buys assigned in the past three months, as indicated by the graphic below. After a 532.67% rally in its share price over the past year, the average RGTI price target of $5.20 per share implies 22.39% downside risk.
