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.
However, if it’s high-potential tech stocks that interest you, other opportunities currently look much more reasonable and secure, while still presenting solid upside potential.
The ProPicks IA Titans de la Tech strategy, which has returned more than 2000% in the long term and is preparing to sign off December with solid gains, specializes in spotting these high-potential technological opportunities.
Like every month, the strategy will be re-evaluated on the first trading day of January. At that time, InvestingPro subscribers will receive a list of tech stocks to buy and sell for the month of January.
Note that the Tech Titans strategy is offered alongside 5 other thematic strategies managed by AI, which have proven their ability to outperform the markets over time.
Click here to learn more about InvestingPro’s ProPicks AI strategies, and take advantage of the New Year promotion to subscribe with a discount of up to -50%!
Related News :