Rigetti Computing Drops 40% as CEO Holds Zero Shares and Revenue Falls 18%

IONQ -0.89% QUBT -0.19% RGTI +0.88%

Quick Read

• Rigetti Computing (RGTI) fell 40% in a month as CEO Subodh Kulkarni sold his entire position at $12 per share.

• Rigetti generated just $1.95M in Q3 revenue while burning through $200.97M in cash.

• The company trades at 1,033x sales on a $7.74B market cap despite an 18.1% revenue decline.

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Shares of Rigetti Computing (NASDAQ: RGTI) collapsed 40% over the past month, falling from $39 in early November to $23.45 on December 1. The crash coincided with a dramatic shift in retail investor sentiment, plummeting from bullish scores of 78-82 in late November to very bearish readings of 12-18 by early December on platforms like Reddit and X. The reversal centers on mounting concerns about insider selling, revenue declines, and extreme valuations across the quantum computing sector.

Insiders Cash Out While Revenue Shrinks

Retail traders on r/wallstreetbets are fixated on insider selling patterns. CTO David Rivas and CFO Jeffrey Bertelsen both sold shares on November 20 at $26.34 and $26.35 respectively, just as the stock was crashing. More concerning to investors: CEO Subodh Kulkarni sold his entire position at $12 per share and currently holds zero shares. One detailed bearish post gaining traction quotes a Reddit user who writes, "RGTI - Insiders continue to cash out; down 69% (or so..)" and points to the pattern of executive selling during the stock's decline.

RGTI - Insiders continue to cash out; down 69% (or so..) by u/dnr41418 in wallstreetbets

The financial picture supports bearish sentiment. Rigetti generated just $1.95M in Q3 revenue, down 18.1% year-over-year, while burning through $200.97M. The company trades at a staggering 1,033x sales ratio on its $7.74B market cap. Three fundamental concerns dominate discussions:

• Revenue declined 18.1% YoY despite quantum computing hype

• Cash burn rate requires continuous dilution through ATM offerings

• Commercial quantum computing remains 10+ years away per CEO comments

Quantum Sector Implodes Across the Board

IonQ (NYSE: IONQ) dropped 42.6% from its October peak of $82.09 to $47.12, while Quantum Computing Inc (NASDAQ: QUBT) crashed 55.5% from $24.62 to $10.95. All three stocks peaked mid-October before retail enthusiasm evaporated. IonQ trades at 209x sales on $79.8M revenue, while QUBT commands a 4,495x sales ratio on just $546K in revenue. Both remain deeply unprofitable with negative operating margins exceeding 1,000%.

Investors should monitor quantum computing sector announcements and watch for any insider purchases that might signal management confidence. The sector's synchronized crash suggests speculative excess rather than company-specific issues, making near-term recovery dependent on broader risk appetite returning to highly speculative technology plays.

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