Updated
Updated · The Motley Fool · Nov 15
Rigetti Stock Seen Falling to $5 as 269 P/S Ratio Signals Overvaluation
Updated
Updated · The Motley Fool · Nov 15

Rigetti Stock Seen Falling to $5 as 269 P/S Ratio Signals Overvaluation

3 articles · Updated · The Motley Fool · Nov 15

Summary

  • $5 a share is a plausible 12-month target for Rigetti, with the stock viewed as overvalued despite already falling 81% from its all-time high.
  • A $3.7 billion market value is hard to justify against just $1.4 million of third-quarter revenue, leaving Rigetti trading at a 269 price-to-sales ratio, or 81 on 2027 revenue estimates.
  • Losses are still widening as commercialization remains distant: third-quarter operating expenses rose 62% to $34 million, producing a $33.2 million operating loss.
  • Rigetti is improving its quantum hardware — lifting 2-qubit gate fidelity to 99.5% from 99.1% — but real-world utility may still be years away, with some industry estimates stretching 20 to 40 years.

Insights

With quantum error rates still high, is Rigetti's niche success in financial forecasting a true commercial breakthrough or just a mirage?
Will Rigetti's recent CHIPS Act funding and promising finance pilot study be enough to justify its massive multi-billion dollar valuation?
Could the upcoming C-DAC system installation trigger the revenue acceleration Rigetti desperately needs to reverse its dramatic stock plunge?