Rigetti Stock Rebounds, Analyst Raises After Earnings Dip

Rigetti Computing stock (NASDAQ: RGTI) has had a volatile 24 hours, rallying into yesterday's close, dropping more than 10% in extended hours, and at one point trading up 10% before we enter the final few hours of trading. Holders of the stock will no doubt be used to some chop in the price, but for those who are just tuning into price around earnings, the level of volatility may come as some surprise.

The earlier dip came following the announcement of the company's Q4 financials, which included a net loss of approximately $153 million. This is a substantial increase from a net loss of $12.6 million during the same period last year. The latest financial results also reflected $135.1 million in non-cash charges attributable to earn-out and derivative warrant liabilities.

Operationally, Rigetti reported a loss of $18.5 million, which exceeded Wall Street's predicted loss of $16 million. Their revenue figures showed a decline to $2.3 million from last year’s $3.4 million, slightly underperforming the consensus estimate of $2.5 million.

CEO Subodh Kulkarni conveyed that Rigetti is still entrenched in its Research and Development phase, with commercialization efforts projected to be four to five years away. Nonetheless, the company's strategic positioning was affirmed by financial analysts.

Alliance Global Partners raised their price target on the stock, pushing up their bullish mark from $15 to $16, whilst maintaining a Buy rating. Despite what has been a longer term bullish trend, with the stock up more than 380% in the past 12 months, 2025 has started with a significant pullback, with the price down 56% YTD.

With the broader market, and tech under pressure on the day, evidenced by the Nasdaq 100 down 2.35%, a bullish turnaround is no mean feat.