Rigetti Computing's stock drops 57% from highs

Quantum computing stocks are struggling as the Nasdaq Composite experiences a downturn. This follows a year where interest surged for artificial intelligence companies, with big tech firms like Amazon and Microsoft developing quantum chips. Despite the hype, some investors are reconsidering their investments. Rigetti Computing's stock saw massive growth, rising up to 2,750%, but has since dropped 57% from its peak. As investors ponder if it's a good time to buy, the company's current share price is around $8.62, indicating it might be undervalued compared to its peers. However, Rigetti has generated only $10.8 million in revenue while reporting a net loss of $201 million. This suggests the company is not profitable yet. Rigetti’s price-to-sales ratio of about 225 is high, indicating the stock may be overvalued despite the recent price decline. Many investors are losing confidence in Rigetti, seeking safer alternatives amid economic uncertainty. The perception is that it has a long way to go before it can justify its market value, making it potentially not a bargain right now.