Rigetti Computing (NASDAQ:RGTI) has turned a $10,000 investment made three years ago into over $80,000. That’s a more than 700% return, even though it’s currently 73% off its peak during that period.
Despite the current price discount, I still wouldn’t touch the quantum computing stock. Here’s what’s driving the stock, and why it’s not right for me.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Image source: The Motley Fool.
Not the right combination for my situation
Rigetti Computing went public in early 2022 after completing its merger with a special purpose acquisition company, valuing the quantum computing start-up at $1.5 billion. It languished for a few years before taking off in late 2024, due to growing investor optimism in the sector. At one point, the stock was up about 3,000% from its low point in late 2023. While the quantum computing stock has come down sharply from that euphoric peak as investors have tempered their expectations, it’s still worth over $5 billion.
That nauseating volatility is one reason why I won’t touch Rigetti Computing stock. I’m starting to position my portfolio to support an early retirement and want to reduce its volatility.
A couple of factors are driving that volatility. Rigetti is still a very early stage company. It reported only $5.1 million in revenue during the second quarter, while its operating loss totaled $28.1 million. As a result, it’s burning through cash ($32 million in net cash used in operating activities during the first six months of this year). On a more positive note, the company ended the second quarter with $541 million in cash and available short-term investments, giving it a strong position to continue funding its growth. It also signed a letter of intent with the U.S. Department of Commerce for up to $100 million in funding over three years to accelerate superconducting quantum computing research and development. However, with no profit and low revenue, Rigetti trades at a nose-bleed valuation at more than 375 times sales.
While Rigetti Computing has tremendous promise, its volatility, money-losing business, and sky-high valuation aren’t right for my situation. That’s why I won’t touch the stock despite the big drop from the peak.
Should you buy stock in Rigetti Computing right now?
Before you buy stock in Rigetti Computing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rigetti Computing wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $387,158!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,365,749!*
That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.
*Stock Advisor returns as of September 20, 2026.
Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Rigetti Turned $10,000 Into Over $81,000 in 3 Years — and It’s Still 73% Off Its High. Here’s Why I Still Wouldn’t Touch It. was originally published by The Motley Fool
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: finance.yahoo.com
