Rigetti Computing, Inc. (RGTI): A Bear Case Theory

Rigetti Computing, Inc., done its subsidiaries, builds quantum computers and the superconducting quantum processors the United States, the United Kingdom, remainder of Europe, Asia, and internationally. RGTI faces important near-term downside arsenic aggregate ETF rebalances converge this Friday, December 19th, creating aggravated forced selling pressure. The $3.2 cardinal Defiance Quantum ETF (QTUM) unsocial indispensable liquidate $30 cardinal of RGTI shares and $10 cardinal of IONQ, and respective different ETFs holding RGTI are rebalancing simultaneously, compounding the effect.

This mechanical, non-speculative lawsuit comes astatine a peculiarly susceptible clip for RGTI, a banal with a debased interval that has tally up implicit the 4th contempt antagonistic net and an unreasonably precocious price relative to fundamentals. Insider enactment further underscores the deficiency of assurance successful the company; determination person been nary insider purchases since June 2022, caller income occurred arsenic precocious arsenic December 10th, and notably, the CEO holds nary shares, signaling internal skepticism about the company’s prospects.

RGTI’s fundamentals are highly weak, with a $10 cardinal marketplace capitalization generating little than $2 cardinal successful gross past 4th portion burning done $43.6 cardinal successful currency implicit 9 months, sustained chiefly done retail stock sales. The convergence of ETF-driven selling, ongoing insider exits, and negligible operational show sets the signifier for a crisp marketplace correction.

Investors should expect a severe, perchance abrupt diminution successful RGTI’s banal arsenic these forces collide, creating a high-risk situation for existing shareholders. The forced liquidation, combined with cardinal disconnects and deficiency of insider support, positions RGTI for a pronounced and contiguous downward accommodation successful price.

Previously we covered a bullish thesis on IonQ, Inc. (IONQ) by Kai Timmermann successful January 2025, which highlighted the company’s ion-trap technology, increasing revenue, strategical contracts, and acquisition imaginable contempt antagonistic margins. The company's banal terms has appreciated approximately by 64.19% since our coverage. The thesis inactive stands as IonQ continues to innovate. dnr41418 shares a contrarian presumption on Rigetti Computing, Inc. (RGTI), emphasizing forced ETF selling, insider exits, and anemic fundamentals, showing the risks different quantum subordinate faces contempt akin manufacture positioning.