Rigetti Computing Shares Drop 9% This Week: Valuation Concerns Trigger Selling

"Performance: A Brutal Start to 2026 Rigetti is down 27.36% year-to-date and 37.44% over the past month. The stock peaked at $58.15 in mid-October but has since given back most of those gains. For context, the one-year return still sits at 31.35%, but momentum has clearly reversed. The company trades at a 660x price-to-sales ratio with $7.49 million in trailing twelve-month revenue and a $4.95 billion market cap."

"It's well known that quantum computing is largely a pre-revenue space. Even under fairly optimistic modeling from Wall Street, Riggetti will remain profitless into 2029 and see revenue at $197 million. That would still leave the company trading for more than 25X its 2029 sales today. However, these numbers show how much the quantum space is at the whims of investor sentiment. With few business results across the next five years, quantum stocks trade more on optimism of what the space could be in the next 5 to 10 years. That sentiment can swing wildly."

"On February 12, TD Cowen analyst Krish Sankar downgraded Rigetti to Hold, citing increased costs in the quantum computing field and heightened competition that make the current valuation overly optimistic. The analyst specifically flagged 2027 revenue estimates as unrealistic. This matters because Wall Street had been treating quantum stocks like lottery tickets. Sankar's note was a reality check: "The quantum industry faces a challenging and expensive path to success." The consensus price target sits at $38.85, implying upside, but that downgrade shifted sentiment fast."

Rigetti's shares dropped 9.15% this week to $16.09, with year-to-date losses of 27.36% and a 37.44% decline over the past month. The stock peaked at $58.15 in mid-October and now trades at a 660x price-to-sales ratio on $7.49 million in trailing twelve-month revenue and a $4.95 billion market cap. Street models project losses through 2029 with revenue around $197 million, leaving current valuation far above projected sales. TD Cowen downgraded the stock to Hold, citing higher costs and competition and flagging 2027 revenue estimates as unrealistic, pressuring sentiment.

Read at 24/7 Wall St.