Down 57% From All-Time Highs, Is This Quantum Computing Stock the Bargain of the Decade?
Over the past year, a new subsector of artificial intelligence (AI) stocks started receiving intense investment interest. As a result, these companies saw parabolic rises in their stock price seemingly out of nowhere. What was the catalyst fueling the hype around these emerging AI players? The basic explanation is that quantum computing started gaining investment traction within the broader AI narrative.
Many big tech companies, including Amazon, Microsoft, Alphabet, and Nvidia, are developing quantum computing chips or are involved in quantum computing partnerships. Part of the growth story for these stocks is investor interest in these efforts.
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While investors appear to be captivated by the idea of investing in quantum computing, some of them are looking beyond the usual "Magnificent Seven" stocks. That led them to look at pure-play quantum computing companies such as IonQ (NYSE: IONQ), D-Wave Quantum (NYSE: QBTS), and Rigetti Computing (NASDAQ: RGTI). In the case of Rigetti stock, it has soared by as much as 2,750% over the last six months.
But recent short-term worries about the economy as well as specific worries raised about the development timeline for AI, and more specifically quantum computing, sparked a pullback for some of these stocks. As of the market close on March 27, shares of Rigetti are trading down by 57% from all-time highs.
Is this an opportunity to take advantage of broader selling activity among stocks in the Nasdaq Composite to buy stock in a great company at a discount? Or has Rigetti had its moment?
Analyzing Rigetti's stock price movement
In the top chart pictured below, investors can see Rigetti's stock price movement over the last year. Up until October, Rigetti was flying under the radar as an unknown penny stock.
Data by YCharts.
The bottom chart shows the price action for a quantum computing-themed exchange-traded fund (ETF). Interestingly, the Defiance Quantum ETF (NASDAQ: QTUM) saw a similar surge to that of Rigetti around October of last year. It's a clear indication that the idea of investing in quantum computing stocks started to land on more radars toward the end of 2024.
While Rigetti stock saw some outsized price appreciation, the stock's rise was short-lived. For most of 2025, shares of Rigetti have been on the decline.
Let's analyze Rigetti's underlying business and valuation trends to assess if now is an opportunity to buy the dip.
Is the sell-off in Rigetti Computing a buying opportunity?
With a share price of roughly $8.62, Rigetti stock looks cheap. However, smart investors know that looking at the share price doesn't provide you with a real understanding of how much a company is actually worth.
As of this writing, Rigetti Computing has a market capitalization of $2.43 billion. This is significantly below that of IonQ, and relatively in line with D-Wave Quantum. Given these dynamics, Rigetti stock may look like a better buy when compared to its peers. But the market cap on its own is also not a very good indicator of whether a stock is a bargain.
Data by YCharts.
Some other metrics to consider to better judge Rigetti's valuation involve looking at the company's top- and bottom-line financials. Over the last 12 months, Rigetti Computing generated $10.8 million in revenue and had a net loss of $201 million. This shows the company is making money (some companies out there don't even accomplish this), but that its expenses are bigger than its income. A negative balance sheet isn't good, but it also isn't unusual for a growth stock.
Considering the business isn't anywhere close to profitable at the moment, an alternate way to determine if Rigetti stock is a bargain is to use a metric that analyzes its sales. Given trailing-12-month sales of $10.8 million and a market cap of $2.43 billion, Rigetti is trading at a price-to-sales (P/S) ratio of roughly 225.
Determining a bargain P/S ratio depends largely on the company and the industry. Tech stocks and growth stocks tend to sport higher P/S ratios than average (which is generally below 5), but once a P/S starts going above 25 or so, it really shouldn't be considered a bargain. A high P/S generally offers a clear indication that a stock will take a long time to justify the initial purchase price. Rigetti Computing's 225 P/S suggests that, even after a 57% share price decline, the stock has heavy valuation inflation.
Rigetti is beginning to fall out of favor with investors as they see indications that it has a long way to go before its business really scales. Furthermore, given how much cash Rigetti is burning in its effort to grow, I suspect many investors are seeking safer alternatives, especially given the uncertainty in the stock market right now.
To put it plainly, I think Rigetti Computing stock is overvalued and very much not trading for a bargain right now -- despite the appearance of a depressed share price.
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In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Specifically, statements regarding the anticipated timing of the Meeting; the proposed completion of the Arrangement; and other statements that are not statements of historical facts are all considered to be forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances. This forward-looking information is based on our opinions, estimates and assumptions that, while considered by the Company to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to: the risk that the Arrangement will not be completed on the terms and conditions, or on the timing, currently contemplated; that the Arrangement may not be completed at all, due to a failure to obtain or satisfy, in a timely manner or otherwise, required Shareholder, court and regulatory approvals and other conditions to the closing of the Arrangement or for other reasons; the risk that competing offers or acquisition proposals will be made; the possibility of litigation relating to the Arrangement; credit, market, currency, operational, liquidity and funding risks generally and relating specifically to the Arrangement, including changes in economic conditions, interest rates or tax rates; risks related to delays in Shareholders receiving the Meeting Materials in light of the potential Canada Post labour disruption, and those other risks discussed in greater detail under the "Risk Factors" section of our Annual Information Form which is available under our profile on SEDAR+ at If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in forward-looking statements included herein. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, any forward-looking statements included herein are made as of the date of this news release and, except as expressly required by applicable law, AHG assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements. SOURCE Andlauer Healthcare Group Inc.
