Rigetti Computing (RGTI +2.93%) is a promising tech company with loads of potential in the quantum computing space. As demand for artificial intelligence grows, so too does the need to process a lot of data quickly. If Rigetti develops computers that can help meet those needs, it can easily be a business that grows significantly in value.
Unfortunately, that's still a long-term vision which could be years away from being a reality. In the meantime, the company is burning through cash, incurring losses, and it doesn't generate much growth these days. And its poor financials raise concerns about its long-term viability, which are undoubtedly weighing on its stock performance.
This year, shares of Rigetti have declined by more than 30%. Have they bottomed out, and could now be a good time to buy the stock?
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The stock has been rallying recently
Rigetti investors may see hope in the tech stock rising of late, as a sign that perhaps it has bottomed out. On March 30, it closed at $12.90, and entering trading on Monday, it was up around $14.70 -- a gain of about 14% in a span of just two weeks. While it's still far above its 52-week low of $7.81, investors have grown increasingly bullish around Rigetti over the past year and may be willing to pay more of a premium for the stock these days.
But while Rigetti's stock may be showing signs of improvement of late, that doesn't mean the business itself is on a stronger footing. In 2025, the company incurred an operating loss of $84.7 million, which was worse than the $68.5 million loss it posted a year earlier. Its operating cash burn has also intensified, rising from $50.6 million in 2024 to $58.5 million this past year.
NASDAQ: RGTI
Key Data Points
Rigetti's stock is cheaper, but its valuation isn't low
Even though Rigetti's stock has been falling sharply this year, its market cap remains fairly high for a business at such an early growth stage, which possesses many question marks. At just under $5 billion, its price-to-sales multiple is well over 600.
If it truly establishes itself as a leader in the quantum computing space and becomes the real deal, with strong financial results to back it up, then Rigetti's stock could certainly stand to generate fantastic returns for investors. However, there are no assurances as to how things will play out. And with plenty of competition out there, it won't be an easy path forward for Rigetti. This could make for a compelling stock to watch, but it's likely too risky for the vast majority of investors to own.
