Rigetti Computing is experiencing a significant downturn on Wednesday, driven by negative sentiment among retail traders and increased bearish options activity. This decline comes amid a notable drop in confidence from retail investors, as evidenced by discussions in online forums.
A post on Reddit’s r/WallStreetBets by user bespoketrancheop has drawn considerable attention, highlighting the Google Street View of Rigetti’s headquarters, projected for March 2025. Despite being the most engaged post about Rigetti in the last seven months, some commenters remarked that this type of analysis isn’t new, with one user stating, “People been posting this since it was $11,” and another dismissing the use of Google Street View as inadequate due diligence.
While it may not be accurately pinpointed as the sole cause for today’s price drop, this development occurs in a context where quantum computing stocks have seen random fluctuations in value, both up and down, often without any accompanying news.
A more pressing factor contributing to Rigetti’s current predicament is the sudden spike in options trading. This week has seen an uptick in put options for the quantum computing firm, particularly contracts with a strike price of $50 set to expire this Friday. Open interest for these contracts was under 7,000 before today but has already exceeded 30,000 in volume, indicating a substantial number of speculators betting against Rigetti’s stock in the near term.
Overall, while the current market climate for Rigetti appears challenging, it’s essential to recognize that fluctuations in investor sentiment and options activity can shift rapidly in the tech sector, especially within emerging fields like quantum computing. Investors will be watching closely to see how these dynamics unfold in the coming days.