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RGTI Remains Overly Expensive Given Its Uncertain Path To Monetization & Over Reliance On Research Funding/Dilutive Capital Raise
We previously covered Rigetti Computing (RGTI) in April 2025, discussing why its boom and bust rally had
Rigetti Computing's Lofty Triple Digits Valuation Is Unwarranted - Uncertain Monetization Prospects Ahead
Summary
- Quantum computing stocks are booming again, as certain market leaders, such as QBTS and IONQ, reap the benefits of the ongoing cloud super cycle.
- The same may not be said for RGTI, with an advantage platform launch only expected over the next five years, as they mostly rely on research funding for revenues.
- This is on top of the ongoing dilutive capital raises to bridge the growing cash burn rate, with long-term shareholders' equity likely to be consistently diluted.
- While there may be numerous market winners in the quantum computing space, it appears that RGTI may be left in the dust, as observed in the downgraded consensus estimates.
- Combined with the overly expensive valuations and the drastically higher short interest volumes, the stock may trade based on hype instead of fundamentals indeed.
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I/we have no stock, option or similar derivative position in RGTI, and no plans to initiate any such positions within the next 72 hours.
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