Rigetti Turned $10,000 Into Over $81,000 in 3 Years -- and It's Still 73% Off Its High. Here's Why I Still Wouldn't Touch It.

Rigetti Computing (NASDAQ:RGTI) has turned a $10,000 investment made three years ago into over $80,000. That's a more than 700% return, even though it's currently 73% off its peak during that period.

Despite the current price discount, I still wouldn't touch the quantum computing stock . Here's what's driving the stock, and why it's not right for me.

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Not the right combination for my situation

Rigetti Computing went public in early 2022 after completing its merger with a special purpose acquisition company, valuing the quantum computing start-up at $1.5 billion. It languished for a few years before taking off in late 2024, due to growing investor optimism in the sector. At one point, the stock was up about 3,000% from its low point in late 2023. While the quantum computing stock has come down sharply from that euphoric peak as investors have tempered their expectations, it's still worth over $5 billion.

That nauseating volatility is one reason why I won't touch Rigetti Computing stock. I'm starting to position my portfolio to support an early retirement and want to reduce its volatility.

A couple of factors are driving that volatility. Rigetti is still a very early stage company. It reported only $5.1 million in revenue during the second quarter, while its operating loss totaled $28.1 million. As a result, it's burning through cash ($32 million in net cash used in operating activities during the first six months of this year). On a more positive note, the company ended the second quarter with $541 million in cash and available short-term investments, giving it a strong position to continue funding its growth. It also signed a letter of intent with the U.S. Department of Commerce for up to $100 million in funding over three years to accelerate superconducting quantum computing research and development. However, with no profit and low revenue, Rigetti trades at a nose-bleed valuation at more than 375 times sales.

While Rigetti Computing has tremendous promise, its volatility, money-losing business, and sky-high valuation aren't right for my situation. That's why I won't touch the stock despite the big drop from the peak.

Should you buy stock in Rigetti Computing right now?

Before you buy stock in Rigetti Computing, consider this: