The volatile, up-and-down nature of quantum computing stocks was strongly in evidence Wednesday with sector title Rigetti Computing (RGTI 3.55%). The company's shares lept 18% higher, on the back of a major quantum computing deal announced by a peer. An analyst's price target raise didn't hurt either. That raise absolutely crushed the S&P 500 (^GSPC 1.36%), which only crept 0.1% higher that day.
A new Middle East deal announced by a rival
That peer is Quantinuum, a company in which U.S. industrial giant Honeywell owns a stake. On Wednesday, Quantinuum announced that it is creating a joint venture with Qatar's Al Rabban Capital to develop that country's quantum computing capability.
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Quantinuum added that the Qatari state is to invest up to $1 billion over a 10-year stretch for the project, which includes not only expanding the technology, but training individuals to develop it.
The announcement came in the midst of an official visit by President Trump to the Middle East; soon after the visit began, the White House enthusiastically touted a clutch of business deals freshly closed in the region by American companies. Among the businesses highlighted by the administration was Quantinuum.
NASDAQ: RGTI
Key Data Points
Post-earnings price target bump
This was bolstered by the price target raise, which was enacted by Craig-Hallum analyst Richard Shannon. He pushed his Rigetti fair-value assessment up to $14 per share from his previous $12, and maintained his buy recommendation.
The reasons for Shannon's move weren't immediately clear, although it's likely something of a reaction to Monday's first-quarter earnings release by the company. While investors were concerned with a notable year-over-year sales drop, on the positive side, Rigetti flipped to a net profit on the bottom line.
