Rigetti’s Deepening Crisis: Can the Quantum Computing Pioneer Recover?

Rigetti Computing, once hailed as a trailblazer in quantum computing, faces mounting challenges as its financial performance deteriorates and shareholder value erodes. The company's latest quarterly report has intensified concerns about its downward trajectory, with no clear reversal in sight.

Beyond disappointing revenue figures, Rigetti faces significant shareholder dilution concerns. Company leadership appears to have capitalized on a previous stock price increase to issue additional shares, substantially increasing the outstanding share count. This move effectively diminishes the value of existing shareholders' stakes, with further increases in total shares anticipated before year-end.

While the company reported a smaller per-share loss than analysts projected, this single positive data point was overshadowed by the overwhelming negative sentiment. The dilution issue has prompted at least one market analyst to downgrade Rigetti shares to a "sell" rating, signaling deepening skepticism about the company's prospects.

Revenue Decline Accelerates Concerns

The quantum computing specialist reported third-quarter revenue of just $1.9 million, falling substantially short of the $2.17 million analysts had forecast. More troubling is the year-over-year comparison, showing an approximate 18% decline. This marks the seventh consecutive quarter of contracting business, establishing a persistent negative trend that shows no signs of abating.

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

Investors responded decisively to the disappointing earnings release. The stock registered losses across four consecutive trading sessions, with a single-day decline of 5.08% highlighting the market's pessimistic assessment.

Technical and Fundamental Weakness Persists

From a technical analysis perspective, Rigetti shares present a concerning picture. The stock currently trades below key moving averages, indicating sustained bearish momentum. Although the company has provided updates to its technology roadmap extending through 2026 and 2027, these long-term developments are being eclipsed by immediate financial struggles and operational uncertainties.

The critical question for investors remains whether Rigetti can implement effective measures to halt its decline, or if the company's challenges will continue to mount in the coming quarters. With both financial performance and technical indicators pointing downward, the path to recovery appears increasingly difficult.