{"id":146586,"date":"2025-09-10T13:23:09","date_gmt":"2025-09-10T13:23:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/146586\/"},"modified":"2025-09-10T13:23:09","modified_gmt":"2025-09-10T13:23:09","slug":"whats-the-downside-risk-for-rigetti-computing","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/146586\/","title":{"rendered":"What’s The Downside Risk For Rigetti Computing?"},"content":{"rendered":"

Rigetti Computing\u2019s stock<\/a> is up a stellar 2,000% in a year. But why? It was really a perfect storm of a few factors. First off, there\u2019s been a ton of hype around quantum computing lately, and a lot of money is pouring into the industry. This got investors excited. Then, with the massive AI boom, many people just started lumping quantum companies like Rigetti in with that whole narrative.<\/p>\n

Since there are only a handful of publicly traded quantum companies, RGTI became a rare and hot stock to own. On top of that, big-time institutional investors started buying in, which gave the stock even more credibility. This all created a huge wave of momentum, with retail investors jumping in out of fear of missing out, driving the price even higher.<\/p>\n

But here\u2019s the thing \u2013 yes, quantum seems to be the future, but it\u2019s a future which is still years away from commercial application. The technology has limited real-world applications today and is mostly focused on simulating chemistry and physics.<\/p>\n

Look at RGTI\u2019s fundamentals:<\/p>\n

We agree, quantum stocks are all about future growth, and we ourselves did a story on the upside potential<\/a>. But did you ever think of the downside risks? We\u2019ll delve into the risks in the sections below. But, if you seek an upside with less volatility than holding an individual stock, consider the High Quality Portfolio<\/a>. It has comfortably outperformed its benchmark\u2014a combination of the S&P 500, Russell, and S&P MidCap indexes\u2014and has achieved returns exceeding 91% since its inception. Separately, see \u2013 Oracle Stock To $900<\/a>.<\/p>\n

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Image by Markus Winkler from Pixabay<\/p>\n

The Brutal Truth About Market Cycles<\/p>\n

Markets won\u2019t keep moving in one direction, which we\u2019ve been seeing lately, and quantum computing is years away from commercial use. Think about it \u2013 there are many risks that could derail Rigetti\u2019s stock growth engine.<\/p>\n

When things go bad, such speculative stocks don\u2019t fall \u2013 they get hammered. This isn\u2019t an assumption. Let\u2019s look at 2022 when high inflation led to interest rate hikes and markets crashed by 25% from their peak. Do you know how much RGTI stock crashed? It was a whopping 96% fall<\/a> from $9 to $0.40.<\/p>\n

The Downside Risk Scenarios<\/p>\n

What could trigger the next collapse?<\/p>\n

Market-wide correction: Any shift in risk sentiment \u2013 whether from inflation fears, geopolitical tensions, or simply profit-taking \u2013 hits speculative stocks first and hardest.
\nCompetition reality check: Well-established tech giants like Alphabet<\/a>, Honeywell<\/a>, and IBM<\/a> appear to be making the most headway in quantum computing. This will likely remain the case, given the billions of dollars needed to fund research. In fact, Honeywell recently announced a major milestone for its quantum computing division, Quantinuum, which has successfully raised approximately $600 million in new equity capital. The funding round was completed at a pre-money valuation of $10 billion, underscoring strong investor confidence in the company\u2019s technology and its future potential. Now, how does Rigetti \u2013 a company with $10 million in revenue \u2013 compete with such giants?
\nTimeline disappointment: Any indication that quantum commercialization is taking longer than expected could trigger massive sell-offs.
\nDilution concerns: The company already raised $350 million through share offerings this year. More dilution is likely as they burn through cash.
\nRegulatory or technical setbacks: The quantum space is still experimental. Any major technical hurdle or regulatory challenge could devastate sentiment.<\/p>\n

The Bottom Line: Are You Prepared?<\/p>\n

So what\u2019s the real downside risk for RGTI stock from its current levels of $16? If history is any guide, it\u2019s under $2. Are you prepared for it?<\/p>\n

The 2022 crash saw RGTI lose 96% of its value. Even if we assume a \u201cmoderate\u201d correction of 75-80%, we\u2019re looking at stock prices in the $3-4 range. But given the speculative nature and weak fundamentals, a return to sub-$2 levels isn\u2019t just possible \u2013 it\u2019s historically precedented.<\/p>\n

The purpose of this analysis isn\u2019t to be bearish for the sake of it. It\u2019s to make investors aware of what the downside risk is with RGTI stock. It may or may not happen. But the risk element is surely high, and anyone holding this stock should be prepared for potentially devastating losses.<\/p>\n

For investors seeking exposure to growth opportunities without the extreme volatility of speculative single stocks, you could explore the Trefis Reinforced Value (RV) Portfolio<\/a>, which has outperformed its all-cap stocks benchmark (combination of the S&P 500, S&P mid-cap, and Russell 2000 benchmark indices) to produce strong returns for investors. Why is that? The quarterly rebalanced mix of large-, mid- and small-cap RV Portfolio stocks provided a responsive way to make the most of upbeat market conditions while limiting losses when markets head south, as detailed in RV Portfolio performance metrics<\/a>.<\/p>\n

Remember: in speculative growth stocks, the same momentum that drives spectacular gains can create equally spectacular losses. The question isn\u2019t whether RGTI will face volatility \u2013 it\u2019s whether you can stomach what that volatility might look like on the downside.<\/p>\n

Invest with\u00a0Trefis\u00a0Market-Beating Portfolios<\/a><\/p>\n

See all\u00a0Trefis\u00a0Price Estimates<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Rigetti Computing\u2019s stock is up a stellar 2,000% in a year. But why? It was really a perfect…\n","protected":false},"author":2,"featured_media":146587,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[191,6059,49436,49438,49435,49437,74],"class_list":{"0":"post-146586","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-computing","9":"tag-ionq","10":"tag-ionq-stock","11":"tag-rgti","12":"tag-rgti-stock","13":"tag-rgti-valuation","14":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/146586","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=146586"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/146586\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/146587"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=146586"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=146586"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=146586"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}