Is Rigetti Computing Stock a Buy?

Rigetti Computing (NASDAQ: RGTI), one of the early movers in the nascent quantum computing market, posted its first-quarter earnings report on May 12. Its revenue plunged 52% year over year to $1.47 million and missed the consensus forecast for an 8% decline. But it generated a net profit of $42.6 million, compared to its net loss of $20.8 million a year earlier, and its EPS of $0.13 easily exceeded the consensus forecast by $0.18. Let's unpack those confusing numbers.Rigetti's revenue dropped as it recognized fewer milestone payments, faced tougher competition from other quantum computing companies, and struggled to secure bigger contracts in a challenging macro environment. Meanwhile, its abrupt net profit growth was driven by a $62.1 million noncash gain related to the revaluation of its warrants and earn-out liabilities, so investors shouldn't assume that it will remain profitable for the rest of the year. Excluding those one-time gains, it would have only slightly narrowed its net loss year over year to $19.5 million.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool