Rigetti Shares Plunge as Valuation Concerns Mount

Rigetti Computing’s stock is experiencing a severe downturn, marking a dramatic reversal from its previous bullish trajectory. The quantum computing company’s shares have come under intense selling pressure following a period of exceptional gains, with recent trading sessions showing significant deterioration in investor sentiment. Critical technical support levels are now being tested as the decline accelerates.

Sustained Decline on Heavy Volume

The equity has entered a pronounced downward trend, recording losses for four consecutive trading days. This correction phase has been accompanied by unusually high trading activity exceeding $3 billion, highlighting a substantial shift in market dynamics. The previously relentless upward momentum appears to be collapsing under growing concerns about the company’s valuation metrics.

Market technicians are closely monitoring the stock’s interaction with its 20-day moving average, which now represents a crucial technical inflection point. A decisive break below this level could signal further downside potential, with analysts identifying possible support zones around $34.50 and potentially even $30 if the current level fails to hold.

Should investors sell immediately? Or is it worth buying Rigetti Computing?

Fundamental Weakness Emerges

The sharp price correction is forcing investors to scrutinize Rigetti’s underlying financial performance, which presents several challenging aspects:

• Revenue vs. Valuation Disconnect: Despite a year-long rally that propelled the company’s market capitalization to nearly $17 billion, annual revenue remains just over $8 million.
• Quarterly Performance Deterioration: Second-quarter 2025 results revealed a significant revenue decline to $1.8 million, compared to $3.1 million in the same quarter last year.
• Compressing Margins: Gross margins also contracted sharply to 31% in Q2, down from 64% during the comparable period last year.

This growing divergence between market valuation and operational performance has led market observers to characterize the previous advance as a “quantum bubble” driven more by speculative enthusiasm than fundamental business results. Additional negative signals include a sell indicator triggered on October 15, after which the stock began its substantial descent. Insider sentiment is currently rated as negative, further contributing to the bearish outlook.