Rigetti's Q3 Earnings: Hold or Fold the Stock Amid Rising Losses?
Rigetti Computing (RGTI) achieved a key milestone with 99.5% two-qubit gate fidelity on its Cepheus-1 system and secured up to $100M in Department of Commerce funding. However, Q3 operating losses widened to $33.2M as R&D spending surged while revenues declined to $1.4M. Despite strong year-to-date revenue growth of 110% and solid liquidity of $497.1M, the company faces challenges in converting investments into commercial growth, with broader quantum computing adoption still years away. RGTI is rated a Hold with elevated valuation concerns.
