Rigetti Shares Plunge as Quantum Computing Hype Fades

Rigetti Computing, once a high-flying quantum computing contender, saw its stock tumble nearly 10% to $28.30 on Wednesday, rattling investors with a sharp decline. The sell-off followed a dual blow from financial analysts who substantially reduced their price targets for the company, signaling growing concerns about the quantum technology sector's momentum.

The catalyst for Wednesday's downturn emerged from the company's recent quarterly earnings report released Monday. While Rigetti posted a smaller-than-expected loss per share of -$0.03 compared to the anticipated -$0.05, the company delivered disappointing revenue figures. With sales reaching only $1.95 million, Rigetti fell significantly short of the $2.17 million analysts had projected, representing an 18.1% decrease compared to the same quarter last year.

Analyst Downgrades Compound Pressure

Market experts responded swiftly to the earnings disappointment. B. Riley Financial initiated the downgrades, slashing its price target from $42 to $35 while maintaining a neutral rating on the stock. Shortly afterward, Benchmark followed by reducing its target from $50 to $40, though it retained its buy recommendation. Both firms cited a "broader slowdown in momentum across the quantum technology landscape" as their primary concern, indicating sector-wide challenges rather than company-specific issues.

The substantial trading volume of approximately 50 million shares on Wednesday reflected heightened investor anxiety. The stock has now declined almost 19% over the past seven trading sessions and sits approximately 50% below its October 52-week high, marking a dramatic reversal from its previous upward trajectory.

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

Commercial Viability Questions Intensify

The revenue decline highlights the fundamental challenge facing quantum computing companies: despite captivating technology and substantial investor interest, converting innovation into sustainable revenue remains elusive. The industry continues to struggle with finding paying customers willing to adopt emerging quantum solutions, pushing profitability further into the future.

Future Outlook Hinges on Growth Recovery

Attention now turns to whether this represents a temporary setback or the beginning of a prolonged correction. The upcoming fourth quarter and full-year 2025 results, expected early in 2026, will likely provide critical direction for the stock's future. Analysts suggest that only demonstrable revenue growth in these reports will restore investor confidence.

While the current analyst consensus maintains a "Moderate Buy" rating, recent price target reductions suggest this assessment should be viewed cautiously. The quantum computing sector appears to be entering a phase where technological promise must increasingly translate into commercial reality.