Investing.com – After hesitating for a few days, the stock Rigetti Computing Inc (NASDAQ:) resumed its rise after Christmas on Thursday, gaining 36.041% on the session, closing at $15.44.
Knowing that the stock ended November at $3.05, Rigetti now posted a gain of +406% since the start of December.
Rigetti Computing builds quantum computers and superconducting quantum processors. Its quantum computing platform as a service can be integrated into any public, private or hybrid cloud.
The stock therefore benefited from the craze for “quantum stocks” sparked by the recent announcement by Alphabet (NASDAQ:) of a major technological advance in this area.
Moreover, we note that this increase worries some analysts. Those at Citron Research, for example, declared on December 18 that “small-cap quantum stocks are in a bubble,” and that Rigetti “is the most ridiculous.” Believing that “the numbers speak for themselves”, and emphasizing that “R&D spending is the most important indicator in this area”, they noted that in the last quarter, the company “spent only $2 million in R&D – a striking mismatch for a company that claims to “deliver high-performance integrated quantum systems.”
These statements triggered a correction of more than 30% on December 19, but the rise then resumed with a vengeance.
Regarding yesterday’s upward acceleration, no fresh news has come to justify the movement, which was undoubtedly accentuated by the reduced liquidity of the end-of-year holiday period.
Knowing that valuation models and analysts now believe that the stock is highly overvalued, caution is clearly called for with Rigetti.
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