Rigetti Computing, Inc.

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Somewhat Bearish -45

2 Quantum Stocks That Are a Sell Today Despite Long-Term Promise

📉 Zacks Investment Research rates both IonQ (IONQ) and Rigetti Computing (RGTI) as 'Sell' (Rank #4) due to recent selling pressure and high valuations.

📊 IonQ reported Q1 2026 revenues of $64.7 million, an increase of more than eightfold year over year.

🚀 Rigetti nearly tripled its revenues to $4.4 million and launched its 108-qubit Cepheus-1 system on major cloud platforms.

💰 IonQ raised its full-year revenue outlook to $260-$270 million and expanded remaining performance obligations to $470 million.

🏭 IonQ completed the acquisition of SkyWater, adding domestic semiconductor manufacturing capabilities to its operations.

💵 Rigetti ended the quarter with approximately $569 million in cash, cash equivalents, and investments with no debt.

📈 IonQ trades at about 64.2x forward 12-month sales, while Rigetti trades at roughly 186.9x forward sales.

📉 The broader technology sector average valuation is significantly lower at 6.77x forward sales.

🌡️ Inflation data showed CPI rising 4.2% year over year in May, marking the fastest pace since April 2023.

🏦 The Federal Reserve kept benchmark interest rates unchanged at 3.50%-3.75% but signaled a hawkish outlook.

📉 Higher Treasury yields and expectations of elevated rates have reduced investor appetite for long-duration growth stocks.

⚠️ Both companies are particularly sensitive to higher discount rates because their valuations depend on earnings expected years into the future.

🔭 Rigetti reiterated its roadmap to achieve quantum advantage in roughly three years.

🤝 IonQ reported continued momentum across government contracts and enterprise customers.

📉 Analysts suggest investors may consider trimming holdings or taking partial profits while awaiting a more attractive entry point.

Bullish Signals
  • IonQ's first-quarter 2026 revenues increased more than eightfold year over year to $64.7 million.
  • IonQ raised its full-year revenue outlook to $260-$270 million and expanded remaining performance obligations to $470 million.
  • Rigetti nearly tripled its revenues year over year to $4.4 million.
  • Rigetti launched its 108-qubit Cepheus-1 system across major cloud platforms.
  • IonQ completed the acquisition of SkyWater, adding domestic semiconductor manufacturing capabilities.
  • Rigetti ended the quarter with approximately $569 million in cash and no debt, providing financial flexibility.
  • Both companies continue to execute on their technology roadmaps and expand commercial traction despite market headwinds.
  • IonQ reported accelerating demand for quantum computing systems and progress on its 256-qubit platform.
Risk Factors
  • Both stocks trade at substantial premiums to the broader technology sector, with IonQ at 64.2x and Rigetti at 186.9x forward sales versus a sector average of 6.77x.
  • Elevated interest rates and inflation data have reduced investor appetite for speculative growth stocks, causing significant share price declines.
  • The companies remain years away from profitability, making them sensitive to higher discount rates and changing monetary policy expectations.
  • Recent selling pressure has sent IonQ shares down 11.1% and Rigetti shares down 19.2% over the past month.
  • Lofty valuations leave little room for execution missteps and make the stocks particularly vulnerable during periods of rising rates.
Full Analysis
Analysts at Zacks Investment Research issue a 'Sell' rating for IonQ (IONQ) and Rigetti Computing (RGTI), citing recent selling pressure driven by elevated interest rates and high valuations. Despite the caution, the article notes that the pullback reflects changing investor sentiment rather than a deterioration in business fundamentals, as both companies continue to execute their technology roadmaps and expand commercial traction. IonQ reported first-quarter 2026 revenues of $64.7 million, an increase of more than eightfold year over year. The company raised its full-year revenue outlook to between $260 million and $270 million and expanded its remaining performance obligations to $470 million. Rigetti similarly showed progress with nearly tripled revenues to $4.4 million and the launch of its 108-qubit Cepheus-1 system across major cloud platforms. The primary headwinds for both stocks are macroeconomic factors, specifically a less supportive backdrop for speculative growth stocks due to higher Treasury yields and inflation data. IonQ trades at approximately 64.2x forward sales, while Rigetti trades at roughly 186.9x, significantly above the sector average of 6.77x. These lofty multiples leave little room for execution missteps and make the stocks vulnerable during periods of rising rates. Both companies maintain strong balance sheets with ample cash to support research and development, though they remain years away from profitability. IonQ recently completed its acquisition of SkyWater to add domestic semiconductor manufacturing capabilities, while Rigetti holds approximately $569 million in cash and no debt. The article concludes that while the long-term growth potential exists, current valuations and macro risks suggest investors may consider trimming holdings or waiting for a more attractive entry point.