Rigetti Computing’s (RGTI) stock surge has prompted CEO Subodh Kulkarni to try to temper expectations by stressing that sustainable sales growth and profitability will take time. “Given the hype surrounding quantum computing and some inaccurate claims being made in the industry, we need to manage expectations,” Kulkarni said on Yahoo Finance‘s Opening Bid podcast. He emphasized that the company remains focused on perfecting its technology before ramping up sales efforts.
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The CEO’s comments come after Rigetti’s stock jumped 48% on Tuesday, alongside gains for D-Wave Quantum (QBTS) and Quantum Computing (QUBT). However, shares had fallen earlier after Meta’s (META) Mark Zuckerberg stated on the Joe Rogan podcast that practical quantum computing is still more than a decade away, which echoed Nvidia (NVDA) CEO Jensen Huang’s bearish remarks.
Despite the skepticism from big names, Rigetti’s market cap has soared to above $2 billion even though the company reported a $45 million net loss through Q3 2024. Unsurprisingly, Kulkarni acknowledged that Rigetti has a long road to profitability, stating, “We are still in investment mode, with most of our sales tied to government contracts.” He also pushed back on the idea that the company urgently needs to raise more cash by saying that there is no immediate need for additional funding.
Is RGTI a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RGTI stock based on six Buys assigned in the past three months, as indicated by the graphic below. After a 786% rally in its share price over the past year, the average RGTI price target of $6.10 per share implies 41.2% downside risk.
