TLDR
- Rigetti Computing (RGTI) stock surged 14.38% to reach an 8-month high of $19.09 on Friday
- The company signed a memorandum of understanding with India’s C-DAC to co-develop hybrid quantum computing systems
- Stock touched an intraday high of $20.13, just $1.29 below its 52-week peak of $21.42
- Rigetti is a key holding in the Defiance Quantum Computing ETF with over $2 billion in assets under management
- The company maintains a strong cash position of around $570 million with minimal debt
Rigetti Computing stock climbed to an 8-month high on Friday, closing up 14.38% at $19.09. The quantum computing company saw its shares reach an intraday peak of $20.13 before trimming gains.
The rally came without any major catalysts announced on Friday. Investors loaded up on positions as the stock moved closer to its 52-week high of $21.42.
Earlier this month, Rigetti announced a partnership with India’s Centre for Development of Advanced Computing (C-DAC). The collaboration focuses on developing hybrid quantum computing systems for government laboratories and academic research.
“By joining C-DAC’s renowned leadership in high-performance computing solutions with Rigetti’s expertise in superconducting quantum computing systems, we have the opportunity to design and deliver powerful and practical hybrid computing systems,” said CEO Subodh Kulkarni. The partnership represents a strategic expansion into the Indian market for quantum research and development.
Financial Position Shows Mixed Signals
Rigetti’s financial picture presents contrasts. The company reported an EBIT margin of -2065% and a profit margin of -2091.9%, indicating ongoing operational losses.
Despite generating $10.79 million in revenue, the company continues to post net income deficits. The EV/sales ratio stands at 682.69, suggesting the market valuation exceeds revenue-generating capacity.
However, Rigetti maintains strong liquidity metrics. The company holds a current ratio of 41.6 and minimal debt with a total debt-to-equity ratio of 0.01.
The company’s cash position remains robust at approximately $570 million. This financial cushion provides runway for continued research and development efforts.
Technical Momentum Builds
The stock has shown consistent upward movement over the past week. Trading volume increased during the latest price surge, supporting the bullish momentum.
The $18 level now serves as critical support after the recent breakout. A sustained move above $19.10 could signal further upside potential.
Rigetti holds a position in the Defiance Quantum Computing ETF, which manages over $2 billion in assets. This inclusion provides additional institutional backing for the stock.
The company plans to develop a 100-plus qubit system by year-end. This expansion of quantum computing capabilities represents a key milestone for the technology.
Recent trading sessions have seen the stock close higher consistently. Friday’s move brought shares within striking distance of the 52-week high set earlier this year.
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