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Rigetti Computing (RGTI) fell 40% in a month as CEO Subodh Kulkarni sold his entire position at $12 per share.
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Rigetti generated just $1.95 million in revenue in the third quarter and burned through $200.97 million in cash.
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The company trades at 1,033 times sales with a market capitalization of $7.74 billion despite a revenue decline of 18.1%.
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Actions of Rigetti Computing (NASDAQ: RGTI) has plummeted 40% over the past month, falling from $39 in early November to $23.45 on December 1. The drop coincided with a dramatic shift in retail investor sentiment, falling from bullish scores of 78-82 in late November to very bearish readings of 12-18 in early December on platforms such as Reddit and valuations across the quantum computing sector.
Retail traders on r/wallstreetbets are obsessed with insider selling patterns. CTO David Rivas and CFO Jeffrey Bertelsen sold shares on Nov. 20 at $26.34 and $26.35 respectively, just as the stock was plunging. More worrying for investors: CEO Subodh Kulkarni sold his entire position at $12 per share and does not currently own any shares. One detailed bearish post gaining traction quotes a Reddit user writing, “RGTI: Insiders continue to cash out; down 69% (give or take…)” and points to the executives’ selling pattern during the stock’s decline.
RGTI – Insiders continue to withdraw money; down 69% (more or less…)
by
u/dnr41418 on
wallstreet bets
The financial outlook supports the bearish sentiment. Rigetti generated just $1.95 million in revenue in the third quarter, down 18.1% year over year, while burning through $200.97 million. The company trades at a staggering 1,033 times its market capitalization of $7.74 billion. Three fundamental concerns dominate the discussions:
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Revenue fell 18.1% year-on-year despite quantum computing hype
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Cash burn rate requires continued dilution through ATM offerings
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Commercial quantum computing is more than 10 years away, CEO comments
IonQ (NYSE: IONQ) fell 42.6% from its October high of $82.09 to $47.12, while Quantum Computing Inc. (NASDAQ: QUBT) plummeted 55.5% from $24.62 to $10.95. All three stocks peaked in mid-October before retail enthusiasm evaporated. IonQ trades at 209 times sales with revenue of $79.8 million, while QUBT is at 4,495 times sales with just $546,000 in revenue. Both remain deeply unprofitable with negative operating margins exceeding 1,000%.
