Rigetti Computing Stock

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Rigetti Computing Stock

Rigetti Computing Stock: Should You Buy It?

Rigetti Computing reported strong revenue numbers in Q1. But the Rigetti Computing stock price still fell, which has shocked many investors.

Rigetti Computing is one of the promising quantum computing stocks. Basically, anyone who believes in the future of this emerging technology has bought this stock or thought about doing so.

Rigetti Stock Price Is 72% Below 52-Week High

But despite all the optimism and talks about the future technology, it is still trading 72% below its yearly highs. This makes one wonder if it is the right time to buy Rigetti Computing stock at a discount or if it is better to wait.

The revenue of Rigetti tripled in Q1 and reached $4.4 million. In fact, it was also higher than the forecast of $4.09 million. A closer look at the revenue numbers shows that most of it came from the sale of Rigetti's QPU. The company sold a system to the University of Saskatchewan.

The gross margin of Rigetti also improved from 30% to around 31%. However, operating expenses increased by 24% to $7.3 million.

Rigetti also announced that the Cepheus-1-108Q quantum system is now available to customers. So, that's yet more good news for the investors of Rigetti.

According to the company, the Cepheus-1-108Q is the largest modular quantum computing system that's available for customers.

While we discuss the Rigetti systems, it is also worth noting that they lack accuracy. The accuracy of the epheus-1-108Q's 2-qubit fidelity is 99.1%. On the other hand, the accuracy of single-qubit fidelity is around 99.9%.

An accuracy rate of 99% may sound too good, but it is not enough in the world of computing. Even a small error can lead to wrong calculations, and that's the last thing people want from a computer.

Meanwhile, IonQ is a rival of Rigetti, and its 2-qubit fidelity is 99.99%. This is a slight upgrade from the Rigetti and shows that IonQ is ahead of it.

With all things considered, it is best to avoid Rigetti stock for now as it is struggling with accuracy. In fact, the massive market cap of Rigetti also doesn't make sense, as its tech is still not error-proof.

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