Why Rigetti Stock Fell 22% in July

Shares of Rigetti Computing (RGTI -0.61%) fell 22.6% last month, according to data provided by S&P Global Market Intelligence, as investors grew impatient with unprofitable companies. Investors rotated out of many AI stocks as skepticism spread that all the money being spent in the tech sector will eventually pay off, and some of that skepticism seems to have spread to quantum computing stocks as well. Here's what happened with Rigetti in July and why the stock will likely remain volatile. Image source: Getty Images. No profits and an expensive share price Technology investors scrutinized their investments last month, and many trimmed their positions as they worried that all the money companies are spending on artificial intelligence, data centers, and quantum computing will prove worthwhile. For example, semiconductor stocks were especially shunned last month, with 20 leading semiconductor companies losing more than $1 trillion in cumulative market cap. While Rigetti isn't an AI company, it is spending heavily to grow its business. The company's research and development costs were nearly $41 million in the first half of this year, contributing to an operating loss of $54 million. Meanwhile, Rigetti's revenue was just $9.5 million in the first six months of 2026. Rigetti's shares are also very expensive, with the company's stock having a price-to-sales (P/S) ratio of 444. That's far higher than the average P/S ratio of about 8 for the technology sector. With shares trading at such a high premium and the company spending heavily without any profits, some Rigetti shareholders likely viewed the stock as too risky to hold onto. ExpandNASDAQ: RGTIRigetti ComputingToday's Change(-0.61%) $-0.11Current Price$17.83Key Data PointsMarket Cap$6.0BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.Day's Range$17.48 - $18.2952wk Range$12.53 - $58.15Volume7.9MAvg Vol38.3MGross Margin-3975.14% Rigetti regained some ground on soaring second-quarter revenue Rigetti's revenue spiked 185% in the second quarter (which ended June 30) to $5.14 million, which just outpaced Wall Street's consensus estimate of $5.09 million. Investors were happy with the results, which were released on Aug. 6, and the stock is up about 4% since then. The company also has $541.3 million in cash, cash equivalents, and investments, which goes a long way to Rigetti continuing to invest in its quantum computing technologies. What's more, Rigetti has no debt. But none of the above erase the fact that Rigetti is still spending heavily, is unprofitable, and has a very pricey stock. This means that current shareholders will have to continue to ride out some intense volatility with Rigetti's stock, without any guarantees of eventual success. Potential investors should proceed with caution and understand that they're paying a very high premium for a speculative stock. Read NextAug 10, 2026 •By Micah ZimmermanRigetti Computing Stock Surged -- Here Is What Is Driving the RallyAug 5, 2026 •By Ryan Vanzo2 AI Stocks to Buy Before They Surge 218% or More, According to Wall StreetAug 2, 2026 •By Sara AppinoIonQ vs. Rigetti: Which Quantum Computing Stock Is a Better Buy in 2026?Jul 27, 2026 •By Rich SmithWhy Rigetti Computing Stock Just PoppedJul 27, 2026 •By Anthony Di PizioPrediction: This Quantum Computing Stock Is Going to Plummet After Aug. 6Jul 27, 2026 •By Alex CarchidiWhat's Next For Rigetti Computing Stock?About the AuthorChris Neiger has been a contributing Motley Fool technology and automotive analyst since 2012.

Before The Motley Fool, Chris was an automotive journalist for the BBC. He holds a master’s degree in journalism from Regent University and a bachelor’s degree from the University of Delaware.TMFNewsieStocks MentionedRigetti ComputingNASDAQ: RGTI$17.85(-0.53%)-$0.10Motley Fool Stock Advisor’s Latest PickGet Access---% Avg Return*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.