When Will Rigetti And These Two Stock Rally End?
Date
12/30/2024 7:07:32 AM
(MENAFN- Baystreet)
When google parent Alphabet (GOOG) announced a breakthrough in its quantum chip research, it sent smaller, speculative Stocks higher. Rigetti Computing (RGTI) gained 128.65% in only a week and is up by 1634% in 2024.
Quantum Computing (QUBT) is up 50-fold from its 52-week low, closing at $18.35, while D-Wave Quantum (QBTS) is up by 1354% from its low. The rise in these three stocks on Alphabet's news is not enough to sustain their current share price. In the last quarter, Rigetti posted revenue of $2.4 million but its operating income was a $17.3 million loss.
Rigetti's cash and equivalents fell from $206.6 million in the March 2022 quarter to $20.3 million. The firm should take advantage of the market's mania for quantum computing to raise cash. This will of course hurt its shareholders.
Bearish investors who hold a 16.87% short float against RGTI stock are taking high risks. They cannot time the rally. Instead, they need to accumulate their bet against RGTI, QUBT, and QBTS stock as the stock price rises.
Daily buying volumes could continue to rise as those stocks attract the“fear of missing out” crowd. Unless those firms announce multi-million deals, positive emotions on those stocks will shift to the negative. If that happens, the stock will sell off.
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