They Warned This Quantum Stock Had Gone Too Far. A Year Later, It’s Down 75%
Rigetti Computing (RGTI) shares fell 75% after B. Riley downgraded it to Neutral in Nov. 2025, citing government funding delays and stretched valuation. Revenue missed estimates, but later grew. B. Riley upgraded to Buy in Jan. 2026 with a lower target. Analysts' average target is $28.52, but shares trade near $11.61. RGTI trades at 310x trailing sales with no debt and $541.29M in cash.
How this was made
The 30-second read
Why it matters
The recap underscores persistent valuation concerns and funding risk, suggesting limited upside in the near term.
Market read
The story reinforces bearish sentiment for high‑multiple quantum‑tech stocks after a series of earnings disappointments.
What to watch
Potential strategic partnerships beyond the Commerce Department and long‑term government R&D pipelines could improve outlook.
Background
Rigetti Computing, a NASDAQ‑listed quantum‑computing company, has experienced a 75% drop from its 2025 peak amid missed earnings and a dilution‑linked funding deal.
Ticker impact
The article recaps Rigetti Computing's recent downgrades, missed revenue targets and equity‑linked funding, confirming a steep price decline.
likely further downside as investors remain wary of high‑multiple valuation and funding dilution
Recent earnings misses and equity stake by the Commerce Department signal funding risk and dilution, supporting a bearish outlook.
Market effects
Highlights funding risk for quantum‑computing firms reliant on government contracts.
Limited to U.S. and U.K. investors tracking high‑growth tech stocks.
Minimal; primarily affects niche quantum‑tech investors.
Counterpoint
If Rigetti can secure clean equity funding and accelerate revenue growth, the stock may rebound from oversold levels.
Key entities
- companyRigetti Computing
NASDAQ‑listed quantum‑computing firm
- analystB. Riley Securities
Downgraded Rigetti and later raised target before reversing stance
