Why Did ASTS, CRWV, RGTI Stocks Tumble To 52-Week Lows Today?
π Rigetti Computing stock hit a new 52-week low of $10.60 amid sector-wide weakness and commercialization concerns.
π Shares fell 5% as investors weighed high spending, slow progress, and unclear customer demand in the quantum computing market.
π B. Riley slashed its price target on RGTI to $25 from $35 while maintaining a 'Buy' rating.
π The company is set to report Q3 earnings on November 10 with analysts expecting $3.68 million in revenue.
π° Fiscal.ai forecasts a loss of $0.05 per share for the upcoming quarter, highlighting ongoing profitability challenges.
π Retail sentiment around Rigetti shifted from 'neutral' to 'bearish' on Stocktwits following the price drop.
Risk Factors
- Shares tumbled to a 52-week low of $10.60 due to sector weakness and concerns over slow commercialization progress.
- Investors cited high spending and unclear customer demand as key factors driving the sell-off in quantum computing stocks.
- B. Riley slashed its price target from $35 to $25, signaling reduced near-term valuation expectations despite a maintained 'Buy' rating.
- Analysts expect the company to report a loss of $0.05 per share in Q3 earnings, reflecting ongoing operational losses.
- Retail sentiment deteriorated from neutral to bearish as investors sold off positions ahead of earnings.
Full Analysis
Rigetti Computing (RGTI) shares tumbled to a fresh 52-week low of $10.60 on Monday, driven by broader sector weakness and specific investor concerns regarding slow commercialization progress and high operational spending. The stock fell approximately 5% as the quantum computing sector faced headwinds ahead of Rigetti's upcoming third-quarter earnings report scheduled for November 10.
Analyst sentiment turned cautious with B. Riley Research slashing its price target on Rigetti from $35 to $25, though maintaining a 'Buy' rating which still implies significant upside potential. Fiscal.ai estimates the company is expected to report revenue of $3.68 million and a loss of $0.05 per share for the quarter, reflecting ongoing challenges in generating profitability within the high-growth quantum sector.
Retail investor sentiment around Rigetti slipped from 'neutral' to 'bearish' on Stocktwits as investors sold off positions across the quantum computing space. This decline contributes to a broader trend where RGTI has lost between 29% and 51% of its value so far this year, alongside peers ASTS and CRWV.