Rigetti Computing, a prominent player in the quantum computing sector, is confronting a severe crisis of investor confidence following a dramatic share price collapse. Over the past month, the company’s stock has plummeted by more than 40%, triggering alarm among stakeholders. This downward spiral was ignited by the release of profoundly disappointing quarterly results, which highlighted a stark divergence between Rigetti’s operational performance and the expanding success of its competitors. The central question now preoccupying the market is whether the firm’s substantial cash reserves can secure its future or if it is merely conducting a slow-motion capital burn.
Liquidity Cushion Meets Mounting Operational Losses
Amid the financial turmoil, one figure stands out as a potential lifeline: Rigetti holds approximately $600 million in cash and equivalents. This war chest is theoretically sufficient to fund ongoing operations and ambitious research initiatives for a minimum of two more years. However, this silver lining is clouded by the company’s significant cash burn rate. The critical challenge for management is to stem the outflow before the reserves are depleted, especially if revenue generation continues to falter.
The third quarter of 2025 served as a stark revelation of the company’s deepening troubles. Rigetti reported revenue of just $1.9 million, representing a steep 18.1% decline compared to the same period last year and falling drastically short of already modest analyst forecasts. The situation was further exacerbated by an operating loss that ballooned to $20.5 million, clearly indicating that profitability remains a distant prospect.
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Market Punishment and a Precipitous Fall
The market’s response to these disclosures has been unforgiving. While other stocks in the quantum computing space experienced more moderate setbacks, Rigetti’s decline was particularly severe. A technical sell signal identified in mid-October marked the beginning of a brutal descent; from that point, the equity has surrendered over 54% of its value.
This erosion of market capitalization reflects a fundamental loss of faith. The long-term promise of revolutionary quantum technology appears to be overshadowed by a harsh short-term reality. Rigetti is grappling not only with immense technical hurdles but also with the fundamental business challenge of converting its innovations into a sustainable revenue stream from paying customers. The recent share price crash embodies profound market skepticism about the company’s ability to ever achieve a transition to consistent, profitable growth.
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