Rigetti Computing’s stock has seen remarkable growth, surging over 1,860% in the past six months, driven by excitement in the quantum computing sector. However, analysts caution that the stock may be overvalued, with concerns about its sustainability amidst market speculation. Overview of Rigetti Stock Performance
Rigetti Computing’s stock has experienced a staggering increase of 1,756% over the past year.
The surge has been fueled by growing interest in quantum computing and advancements in the technology.
Analyst Perspectives
Despite the impressive rise, analysts predict a potential decline in Rigetti’s stock price.
A consensus from six Wall Street analysts suggests a target price of $5.20 per share, indicating a possible 74% drop from current levels.
Some analysts express skepticism about Rigetti’s long-term viability, citing concerns over its revenue and market position.
Financial Health and Future Prospects
Rigetti maintains a strong liquidity position, with cash and equivalents totaling $92.6 million.
The company plans to launch new products in 2025, including a 36-qubit system and a more advanced 100-qubit system by the end of the year.
However, Rigetti’s market capitalization of $5.3 billion is seen as excessively high, trading at 480 times its estimated 2024 revenue of $11.1 million.
Challenges in Quantum Computing
Quantum computing is still in its infancy, facing significant technical challenges such as decoherence and scalability.
Experts believe that while progress is being made, practical applications of quantum computing remain limited.
The competition in the quantum space is fierce, with major players like Google, IBM, and Microsoft investing heavily in research and development.