Analyst Cautions on Rigetti Stock Ahead of Earnings Despite Quantum Computing Hype

Rigetti Computing's stock has surged 156% year-to-date and an astonishing 3,080% over the past 12 months, fueled by growing investor enthusiasm for quantum computing's disruptive potential. The company's Q3 earnings report on October 10 will test whether reality can match these sky-high expectations.

B. Riley's top-ranked analyst Craig Ellis sees consensus estimates of $2.2 million revenue and a $0.06 per-share loss as achievable. However, government contract risks loom—$5.2 billion in proposed quantum funding remains stalled in Congress, including the National Quantum Reauthorization Act and DOE Quantum Leadership Act. 'Quantum's strategic importance suggests eventual approval, but timing remains uncertain,' Ellis noted.

The UK's £3.5 million Quantum Innovation Missions Pilot underscores global competition in the sector. While Rigetti rides the quantum wave, Ellis's caution—'Time to get off this train'—hints at potential volatility ahead for this high-flying speculative play.