Billionaire Israel Englander sold majority shares of Rigetti Computing, despite bullish analyst outlook.
From Yahoo Finance: 2025-05-17 04:03:00
Billionaire Israel Englander sold 80% of his stake in Rigetti Computing in the first quarter, but all analysts rate the stock a “buy.” Rigetti’s full-stack quantum computing approach is seen as the fastest path to commercialization, despite a valuation of 290 times sales.
Englander’s sale of Rigetti shares contrasts with analysts’ positive outlook. Quantum computers manipulate qubits, offering exponential data storage. Rigetti’s quantum systems aim to solve complex problems quickly, like simulating molecules for drug discovery and optimizing supply chains.
Rigetti reported disappointing Q1 financials, missing revenue and income estimates. Revenue fell 51% to $1.5 million, with a net cash use of -$13.6 million. Analysts project continued losses through 2028, despite a surge in Rigetti’s stock price in Q4.
Investors have bid up Rigetti’s stock, but the quantum computing market is expected to be small compared to cloud computing. Rigetti’s current valuation at 290 times sales is concerning, especially with a projected slow growth in the quantum computing industry.
The Motley Fool Stock Advisor analysts recommend 10 stocks for investors, excluding Rigetti. Their picks have shown significant returns historically, outperforming the S&P 500. Rigetti’s high valuation and slow industry growth make it a risky investment choice.
Trevor Jennewine has no position in any stocks mentioned. The Motley Fool recommends Cloudflare and IBM. Rigetti’s stock sale by Englander raises questions about its valuation and future growth potential in the quantum computing market.