When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Zacks.com users have recently been watching Rigetti Computing (RGTI) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
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Rigetti ComputingĀ RGTI shares have plunged 15% following the company's first-quarter 2025 earnings release on May 12. In the first quarter, RGTI reported an adjusted loss per share of 8 cents, along with a sharp decline in revenues of more than 50% year over year.
Rigetti Computing is a speculative investment due to the quantum computing market's immaturity and the company's high cash burn rate and declining financials. Q1/2025 results were disappointing, with revenues below expectations and increased operating losses, highlighting the company's financial instability. The company's valuation is overinflated, trading at high sales multiples despite minimal revenue, making it a risky long-term bet.
Rigetti Computing (RGTI) CEO, Dr. Subodh Kulkarni, returns to Market on Close to talk about his company's latest earnings. While the company's stock sold off after earnings, Kulkarni says quantum computing "is here" and larger application of quantum technology will be seen in three to five years.
Rigetti Computing's Q1 2025 earnings are unimpressive, with declining revenue growth and rapid share dilution, making the stock unattractive despite the sector's current popularity. The company faces significant challenges in scaling its quantum computing technology and intense competition from major players like IBM and newer companies like IonQ. Despite holding $200 million in cash and marketable securities, Rigetti's high cash burn and minimal revenue progress make its valuation of over 200x forward sales unjustifiable.
Rigetti Computing, Inc. (NASDAQ:RGTI ) Q1 2025 Earnings Conference Call May 12, 2025 5:00 PM ET Company Participants Subodh Kulkarni - President and CEO Jeff Bertelsen - CFO Conference Call Participants Brian Kinstlinger - Alliance Global Partners David Williams - The Benchmark Company Quinn Bolton - Needham & Company Richard Shannon - Craig-Hallum Craig Ellis - B. Riley Securities Operator Thank you for standing by.
Rigetti Computing, Inc. (RGTI) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.05. This compares to loss of $0.14 per share a year ago.
Rigetti Computing's first-quarter 2025 performance is expected to have benefited from advancements in quantum computing technology and expanded global partnerships.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?