The quantum computing company’s valuation looks excessive when compared to the entire industry.
The quantum computing industry is in its early growth days. It’ll likely be many years before quantum computers are common. While many tech experts believe there is a lot of potential for them to improve efficiency and productivity, the big question always leads back to when that will actually happen. And that’s the biggest unknown at this stage.
That also means that for the foreseeable future, companies such as Rigetti Computing (RGTI +0.00%) are likely to incur losses. With limited revenue and significant costs, including research and development, investors should brace for the likelihood of not only continued losses, but stock offerings as well, as these companies need money to fund their future growth.
Rather than focusing on the $201 million loss that Rigetti posted last quarter,…
