Quantum Computing Darling Rigetti Tanks Double Digits After Analyst Pullback

Rigetti Computing RGTI shares slid about 10% on Monday after B. Riley cut its rating to Neutral and raised its price target to $42, citing concerns around the timing of U.S. government funding that could affect near-term sales.

The analyst said delays in government funding authorizations pose a meaningful sales-risk despite recent contract wins and a year-to-date rally that has pushed expectations higher.

B. Riley noted Rigetti's cash position and burn appear manageable, roughly $572 million in reserves versus an estimated $19 million quarterly cash burn, but warned that slower government approvals could stretch the sales cycle.

Investors reacted swiftly to the research note, trimming exposure ahead of the company's scheduled third-quarter results on Nov. 10 and a follow-up call on Nov. 11.