Rigetti Computing ( (RGTI) ) has fallen by -7.91%. Read on to learn why.
Rigetti Computing shares slipped 7.91% over the past week, giving investors a reality check after a strong rally in quantum computing stocks. Cboe data throughout the period showed “mixed” options sentiment: on some days the stock bounced modestly, but overall it drifted lower, with traders steadily pricing in smaller day‑to‑day moves as implied volatility fell below its 52‑week median. Even as call options generally outnumbered puts, a steepening put‑call skew on several sessions pointed to growing demand for downside protection, suggesting that options traders are cautious about near‑term risks despite longer‑term optimism.
Behind the pullback is mounting concern that Rigetti’s valuation has run far ahead of its fundamentals. An influential investor, writing under the pseudonym J Thesis, highlighted that the company trades at roughly 272 times forward sales, compared with around 4 times for peers, even though Rigetti is still posting small revenues and significant losses in an early‑stage, expectations‑driven quantum computing industry. The investor acknowledged Rigetti’s impressive top‑line growth — quarterly revenue jumped from $1.47 million to $4.4 million — and its heavy investment in research and development, but argued that the current price leaves little room for any disappointment, making the stock “too expensive to chase” at today’s levels.
At the same time, Rigetti continues to attract attention thanks to an ambitious technology roadmap and bullish forecasts. The company is targeting key performance milestones with its Cepheus‑1‑108Q system, which could support more advanced quantum algorithms, and Wall Street analysts still expect annual revenue growth of at least 90% over the next four years. That optimism underpins a Moderate Buy consensus and an average 12‑month price target implying substantial upside. The tension between those lofty expectations and concerns about stretched valuation appears to be driving this week’s 7.91% decline, as traders reassess how much future promise they are willing to pay for in Rigetti Computing’s shares today.