JPMorgan announced on Monday that, as part of its Security and Resiliency Initiative, it will invest $1.5 trillion over the next decade in various industries, including quantum computing.
Shares of quantum computing company Rigetti Computing, Inc. (RGTI) came on retail traders’ radar after their over 25% jump on Monday, reversing from Friday’s nearly 7% slide amid the broader market sell-off.
Monday’s rally was accompanied by more than two times the average volume, and Rigetti’s stock rose 3.5% in the after-hours session. On Stocktwits, retail sentiment toward the stock remained ‘bearish,’ but the message volume perked up to ‘extremely high’ levels. The message volume change was about 2,000% over the 24 hours leading up to late Monday. The stock was among the top five trending equity tickers on the platform late Monday.
A bearish watcher cautioned that the Rigetti stock may not last long.
Another user lamented the fundamentals, citing hefty losses in relation to revenue due to outflows. “People will pump it higher, though, for sport,” they said.
A third user reported making good money before closing their position and shifting to a short position.
Quantum computing stocks, which showed lackluster sentiment early this year, culminating in early April’s post-tariff sell-off, have seen a strong rally since. These stocks received a shot in the arm from an announcement from JPMorgan on Monday that, as part of its Security and Resiliency Initiative, it would invest $1.5 trillion over the next 10 years in a host of industries critical to national economic security and resiliency, including quantum computing.
Retail investors’ skepticism toward Rigetti is potentially due to the stock’s stellar rally this year. Rigetti stock has gained about 260% this year. The average price target for the stock is $26.83, according to Koyfin, implying over 50% downside from Monday’s closing price.
As recently as this month, Andrew Left’s Citron Research stated that Rigetti is merely an underfunded science project, as the firm contrasted it with Infleqtion, which has agreed to merge with blank-check firm Churchill Capital Corp. (CCCX). Citron deemed that the SPAC was severely undervalued relative to Rigetti, indirectly questioning the latter’s heady valuation.
But few who are bullish on the stock hope for a short-squeeze rally. According to Koyfin, the short interest in Rigetti’s stock is 14.70%.
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