Rigetti stock climbs nearly 8% on tech sector rally
Rigetti Computing Inc. stock rose nearly 8% on Tuesday as investors returned to higher-risk technology stocks during a broad market rally. The Technology sector led all 11 sectors with a 2.82% advance, while Rigetti outperformed this gain by nearly 4.7 percentage points. The company is expected to report second-quarter results on Aug. 11, with revenue projected to increase to $5.09 million.
*this image is generated using AI for illustrative purposes only.
Rigetti Computing Inc. stock climbed nearly 8% on Tuesday as investors returned to higher-risk technology stocks during a broad market rally. The Technology sector led all 11 sectors with a 2.82% advance, reflecting strong demand for growth stocks. Rigetti's gains appeared to mirror the broader shift toward riskier technology names, though the rally looks more like a bounce from depressed levels than a confirmed trend reversal.
The Nasdaq gained 1.95%, while the S&P 500 rose 0.88%. Rigetti outperformed both the broader market and the Technology sector, rising about 7.5%. The Dow Jones Industrial Average rose 0.75%, while the Russell 2000 gained 1.28%, reinforcing investor appetite for risk assets.
Technical Picture Remains Weak
Despite Tuesday's advance, Rigetti remains below key technical levels. The stock trades about 10.9% below its 20-day simple moving average of $17.12 and roughly 34.1% below its 200-day simple moving average of $23.13. The longer-term trend remains under pressure, with the 20-day moving average below the 50-day moving average and a death cross formed in February remaining intact.
Momentum indicators also suggest caution. The moving average convergence divergence (MACD) remains below its signal line, indicating bullish momentum has yet to strengthen. The next resistance level is around $16.50, near the 20-day exponential moving average, while initial support sits near the $15 level.
Quantum Computing Business
Rigetti develops superconducting quantum computers and quantum processors. The company sells systems ranging from 9-qubit to 108-qubit models under the Novera and Cepheus brands. It also provides access to its quantum systems through Rigetti Quantum Cloud Services, allowing customers to use its technology through public, private, and hybrid cloud environments.
Rigetti Computing Earnings Preview
Rigetti is expected to report second-quarter results on Aug. 11. Wall Street expects the company to post a loss of 5 cents per share, compared with a loss of 13 cents a year earlier. Revenue is projected to increase to $5.09 million from $1.80 million.
| Metric | Estimate | Year Ago |
|---|---|---|
| Loss Per Share | 5 cents | 13 cents |
| Revenue | $5.09 million | $1.80 million |
The stock carries a consensus Buy rating with an average analyst price forecast of $31.60. Rosenblatt maintains a Buy rating with a $40 price forecast, while Mizuho rates the stock Outperform with a $27 price forecast. Needham also maintains a Buy rating with a $31 price forecast.
Rigetti is a 5.57% holding in the WisdomTree Quantum Computing Fund ETF. Rigetti Computing shares were up 7.65% at $15.34 at the time of publication on Tuesday.
Will Rigetti's upcoming earnings report on Aug. 11 provide enough momentum to break the current resistance level at $16.50?
How might the projected revenue growth influence analyst price targets if Rigetti meets or exceeds expectations?
Can the broader market rally sustain its support for high-risk tech stocks like Rigetti in the coming weeks?
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