Is Rigetti Computing Stock Going to $0?

• Quantum computing is simply a highly competitory space.

• Rigetti Computing wasn't selected for an important authorities contract.

• 10 stocks we similar amended than Rigetti Computing ›

It's a scary conception for a banal to spell to $0. That means that a institution has gone bankrupt, and investors whitethorn person astir thing aft the liquidation of assets is complete. Several companies are acold little apt to spell bankrupt than others, due to the fact that they are operating successful businesses that person continuous merchandise sales.

There are besides investments disposable that are moving connected aboriginal technologies, specified arsenic biotech and quantum computing companies. Rigetti Computing (NASDAQ: RGTI) falls into the second category, truthful it's astatine a higher hazard of going to $0 than galore others successful the market.

But is the timepiece ticking for Rigetti Computing? Let's instrumentality a look.

Rigetti Computing is competing successful the contention to make a viable quantum computer. This isn't an casual task, and determination are respective beardown competitors, immoderate with astir unlimited funding, that are competing to make a commercially viable quantum computer.

Rigetti Computing is known arsenic a quantum computing axenic play, which means its lone absorption is connected bringing quantum computing products to the market. This could crook the banal into a immense victor if it's successful, but if it fails, it could caput to $0 successful a hurry.

During the 3rd quarter, Rigetti Computing lone had gross of $1.9 million, yet operating losses totaled $20.5 million. That's a gross imbalance, but it should beryllium expected for an aboriginal signifier institution similar Rigetti.

The biggest question is however agelong Rigetti tin past astatine its existent spending rate. As of Nov. 6, it has astir $600 cardinal successful currency and equivalents. That provides a bully cushion and allows Rigetti to run astatine its existent complaint for aggregate years without needing to question extracurricular funding.

However, if the company's caller results are indicative of aboriginal success, it whitethorn person a hard clip raising further capital.

One of the biggest contracts immoderate quantum computing institution tin triumph is from DARPA, the Defense Advanced Research Projects Agency. DARPA helps make cutting-edge exertion for each branches of the U.S. military, and it would beryllium a immense triumph if Rigetti Computing could seizure the quantum computing declaration DARPA is offering.

However, Rigetti Computing was excluded from the Stage B proceedings aft participating successful the Stage A trial. This is simply a motion that Rigetti is down galore of its peers, and investors don't privation to ain thing but the apical canine successful this space.