The quantum computing specialist Rigetti has delivered a performance that would stun even the most seasoned technology investors—its shares have surged by more than 3,000% over the past twelve months. This extraordinary rally, however, masks a critical vulnerability. With quarterly revenue standing at a mere $1.8 million, can such a minimal sales figure possibly validate a market valuation that appears to defy all conventional metrics? The company’s Q3 earnings report, scheduled for release on November 10, may deliver a sobering dose of reality to the market.
A Valuation Stretched to the Extreme
A glance at Rigetti’s financial metrics reveals a startling picture. The company currently trades at a price-to-sales multiple of 1,100—a ratio considered exceptionally high even within the tech sector. The situation becomes more concerning when examining its operational performance. In the second quarter, revenues collapsed by 42 percent to just $1.8 million. Concurrently, the company’s losses widened, reaching $19.9 million.
This chasm between its stock market capitalization and fundamental business data highlights what investors are truly betting on: a future technology whose widespread commercial adoption could still be years away. The confidence of market experts appears tempered; some have even set price targets below the current trading level, signaling potential downside risk.
Should investors sell immediately? Or is it worth buying Rigetti?
Sector-Wide Enthusiasm Fuels the Ascent
Rigetti’s ascent is not occurring in a vacuum. It is riding a powerful wave of sector-wide euphoria surrounding quantum computing. Billions of dollars are flowing into pure-play quantum companies, propelled by the anticipation of the next great technological revolution. These substantial capital inflows have lifted the entire industry, creating a speculative environment that bears a resemblance to the dot-com era.
The central question remains: How long can this investor enthusiasm persist once concrete financial results are disclosed? The publication of Q3 figures after market close on November 10 will provide the first significant test for Rigetti since its rally began. The subsequent conference call on November 11 will likely reveal whether the current valuation can be sustained or if the quantum investment bubble is poised to deflate.
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