Rigetti Computing: Not Even Worth A Speculative Bet (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

• Rigetti has underwhelming revenue execution heavily reliant on government funding for quantum funding projects. However, I think the company is unlikely to benefit even if this materializes.
• The balance sheet funding resources are rather limited, and I would not be surprised if the company announces another raise soon in next week's earnings call.
• Rigetti's working capital profile is worsening, and I expect receivable days to increase further over the next couple of quarters as the company adds more government customers.
• There is limited fundamental rationale to justify its outrageously high valuations in an already bubble-like sector. This may be why we have seen a lot of insiders selling the stock.
• RGTI vs. SPX500 still shows some bullish strength holding up, and the stock seems to be a crowded short. These are the sole two reasons why I have a 'Neutral/Hold' stance despite everything else looking bearish.

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