Rigetti Computing: Here's What Needs To Happen For Its Valuation To Make Sense (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Unlike some other quantum computing stocks that are at least showing meaningful revenue growth, even if via M&A, Rigetti Computing's revenue scale up is still a far way away.
• Rigetti's CEO and other leading technology company CEOs are all warning us that the quantum computing future may be another 2 decades away. We are too early right now.
• The good news for hopeful bulls is that the company is well-funded to sustain another 5-6 years of cash burn. This is also a point of risk for eager bears.
• RGTI stock valuations make the most sense if we look at it from a P/B perspective. The market is expecting its equity value to grow 6x, which is not unreasonable.
• The stock's momentum is in a compelling uptrend with strong price and volume support. But in the absence of meaningful revenue scale up visibility, it seems too risky to buy.

Read the full article here.