Shares of Rigetti Computing (RGTI, Financial) skyrocketed 29.32% today. This significant price surge followed Rigetti's announcement of a breakthrough in quantum computing, where they achieved "99.5% median two-qubit gate fidelity" on their 36-qubit system, effectively halving the previous error rate. This advancement is crucial in moving toward commercially viable quantum computing solutions.
Currently priced at $16.45, Rigetti Computing Inc (RGTI, Financial) shows significant volatility in the stock market. The company has a market capitalization of $5.31 billion. Its Price-to-Book ratio stands remarkably high at 22.85, which indicates a high premium relative to the company's book value. In the past year, the stock has soared by 1185.16%, which suggests a strong momentum.
Despite the impressive price movement, it's important to highlight some concerns. Rigetti's GF Value indicates that it is "Significantly Overvalued" with a GF Value of only $0.56. Investors can refer to the detailed GF Value analysis for RGTI on the GF Value page.
Further, the financial health signals mixed outcomes. While the company boasts a strong Altman Z-Score of 46.72, indicating financial stability, profitability metrics paint a less favorable picture. The company’s EBITDA margin and operating margin are both deep into negative territory, at -1395.22% and -798.66% respectively. Additionally, with zero dividends and no current earnings, Rigetti's profitability remains a major concern.
Investors should be cautious, considering the company's high volatility and insider selling activities. Over the past three months, there have been six insider selling transactions amounting to 1,475,997 shares. As Rigetti remains in the speculative domain with a lack of consistent earnings, the stock is categorized under "Distressed" style profile. While the technological advancements are promising, potential investors should weigh these innovations against the financial red flags before making investment decisions.
