Is Rigetti Computing Stock a Buy Now?

Leo Sun, The Motley Fool

Sat, Apr 5, 2025, 8:41 AM 5 min read

Rigetti Computing (NASDAQ: RGTI) has been a tough stock to hold over the past three years. The quantum computing company, which went public by merging with a special purpose acquisition company (SPAC) on March 2, 2022, started trading at $9.75, but eventually closed at a record low of $0.38 per share on May 3, 2023.

But on April 2, 2025, Rigetti's stock trades at about $8.50 a share. A $1,000 investment in Rigetti at its all-time low would be worth nearly $22,400 today. Let's see why Rigetti's stock slumped and then soared, and whether it's still worth buying after that impressive recovery.

Traditional computers still store and process data in binary bits of zeros and ones. Quantum computers can store fractional values between zeros and ones in "qubits," which allow them to process larger amounts of data at much faster rates.

That sounds like a massive leap forward for modern computing, but quantum computers are still much larger, more expensive, and consume more power than top-tier binary computers. They also output a higher ratio of data errors than their binary counterparts. Correcting a large volume of these errors is a key requirement for building truly usable quantum computers. As a result, quantum computers are still generally used for niche research applications.

However, newer quantum computing companies like Rigetti Computing want to rectify those issues with faster, cheaper, smaller, and more accurate quantum systems. Rigetti designs and manufactures its own quantum processing units (QPUs), builds full quantum computing systems, and hosts a cloud platform for developing quantum applications. That diverse mix of product and services makes Rigetti a one-stop shop -- or a "full stack" play -- on the nascent quantum computing market.

Before it went public, Rigetti claimed its revenue would reach $18 million in 2022, $34 million in 2023, and $73 million in 2024. It also claimed its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) would improve from a $39 million loss in 2022 to a smaller $12 million loss in 2024.

But in 2024, Rigetti only generated $11 million in revenue and a negative adjusted EBITDA of $49 million. On a generally accepted accounting principles (GAAP) basis, it racked up a whopping net loss of $201 million. That disappointing growth trajectory -- along with rising interest rates and the resignation of its founder Dr. Chad Rigetti from the CEO position in late 2022 -- caused its stock to sink to its all-time low in May 2023.