Reddit Bros Are Going Pants-Off for This Quantum Computing Stock Up 470% in a Month

By Stocks News   |   1 month ago   |   Stock Market News
Reddit Bros Are Going Pants-Off for This Quantum Computing Stock Up 470% in a Month

Well, it looks like it didn’t take long for the Reddit crowd to latch onto their next moonshot, and this time, it’s Rigetti Computing.

This quantum computing stock has exploded 470% in the past month, leaving many asking, “Am I too late to the party?” But before you YOLO your savings into this stock, let’s break down the hype, the hope, and, yes, the nitty gritty of what you’re getting into.

First, let’s talk quantum computing—the magical realm where science fiction meets real life. It’s all about harnessing quantum mechanics (think: subatomic particle weirdness) to solve problems faster than regular computers. 

To put this in perspective, Google recently announced its new quantum chip, Willow, which allegedly solved a problem in five minutes that would take the world’s fastest supercomputers 10 sextillion years. (That’s 10 followed by 21 zeros. Yes, it’s insane.) Naturally, this has sparked a frenzy for quantum stocks, with Rigetti leading the charge.

Now, Rigetti is no quantum newbie. The company builds cutting-edge (buzzword alert) hardware and operates its Quantum Cloud Services platform. Their plans include rolling out a 36-qubit system in mid-2025 and a 100+ qubit beast by the end of the year. For the uninitiated, qubits are the quantum version of horsepower… the more qubits, the more power. But unfortunately, Rigetti admits it will need “hundreds to thousands” of qubits to solve real-world problems. In other words: We’re still years (and probably billions of dollars) away from quantum glory.

Now, let’s get real about Rigetti’s financials. The company posted just $2.4 million in Q3 revenue… a 23% drop from last year. For all of 2024, analysts expect $11 million in revenue, which isn’t exactly screaming “next Nvidia.” On top of that, they burned through $17.3 million last quarter and are bleeding cash faster than my college roommate on spring break in Gulf Shores. Sure, they’ve got $92.6 million in the bank, but at this pace, they’ll likely need to beg shareholders for more soon.

And that valuation? Oof. At $17 a share, Rigetti trades at a bubbly 272 times its projected sales for 2024. Even in the world of speculative tech, that’s a hilarious pricetag. To make matters dicier, founder Chad Rigetti (aka the guy this whole company is named after) abruptly bailed in late 2022. For a company that’s already in the “trust me, bro” phase, losing the founder doesn’t exactly inspire confidence.

So, should you dive into Rigetti and hope it becomes the next Nvidia? Look, quantum computing is undeniably the next big thing. Analysts at McKinsey predict it could add $1.3 trillion to the global economy by 2035. If Rigetti pulls this off, it could be a massive player. But right now it’s a speculative bet at best and a lottery ticket at worst.

Sure, if you’ve got money you’re willing to lose (and you love the thrill of riding meme-stock waves) go ahead, toss a few bucks in. Just don’t kid yourself into thinking this is a sure thing. Quantum computing might be the future, but Rigetti is still a gamble wrapped in hype, sprinkled with moonshot dreams. For now, let the Reddit bros have their fun. Quantum computing may be inevitable, but Rigetti at $17 may be a quantum leap of faith now.

P.S. Our "Insider Trade Tracker" recently flagged Peter Anevski, CEO & Director of Progyny, dropping $3 MILLION on his own company’s stock. That’s the kind of stinking rich confidence you don’t see every day… and exactly why our tool is a must-have for spotting where the smart money is moving in real time. Oh, and while we’re at it, we just ranked #23 for free News Apps, ahead of The Washington Post, CNN, Bloomberg, and more. 🎉 Wanna see what else we’re tracking? Become a Stocks.News premium member today. Or, no pressure… feel free to keep enjoying our free articles. Your call. 😉

Stock.News has positions in Rigetti, Reddit, Nvidia,  and Google mentioned in article.

Did you find this insightful?

Disclaimer: Information provided is for informational purposes only, not investment advice. We do not recommend buying or selling stocks. Stock price discussions are based on publicly available data. Readers should conduct their own research or consult a financial advisor before investing. Owners of this site have current positions in stocks mentioned thru out the site, Please Read Full Disclaimer for details Here https://app.stocks.news/page/disclaimer