We recently compiled a list of the 10 Firms Suffer Steep Downfall on Monday. In this article, we are going to take a look at where Rigetti Computing, Inc. (NASDAQ:RGTI) stands against the other stocks.

Ten companies kicked off Monday’s trading in a bloodbath, mirroring the broader market pessimism, with valuations slashed by double digits mostly due to investor caution brought about by key economic uncertainties.

Wall Street’s main indices all fell in the red, with the tech-heavy Nasdaq recording the steepest downfall with 4 percent.

The S&P 500 declined by 2.7 percent, while the Dow Jones dropped by 2.08 percent.

We have identified the 10 worst-performing companies on Monday and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion in market capitalization and $5 million in trading volume.

A close up of an engineer typing at a quantum computing station in a modern office space.

Rigetti Computing, Inc. (NASDAQ:RGTI)

Rigetti fell by 15.4 percent on Monday to finish at $7.91 apiece as investors resorted to profit-taking following Friday’s surge while also exercising caution amid the overall market pessimism.

Last week, Rigetti Computing, Inc. (NASDAQ:RGTI) entered into a share purchase agreement with Quanta Computer, involving the latter’s purchase of $35 million Rigetti Computing, Inc. (NASDAQ:RGTI) shares at a price of $11.59 apiece.

Following the investment, the two parties would jointly invest $100 million over the next five years for the development of quantum computers.

The news propelled Rigetti Computing, Inc. (NASDAQ:RGTI)’s stock price on Friday by 9.87 percent versus Thursday’s close.

Meanwhile, Alliance Global Partners assigned a “buy” rating on Rigetti Computing, Inc. (NASDAQ:RGTI) and a higher price target of $16 from the $15 previously.

RGTI is expected to release a 36-qubit system based on four 9-qubit chips by mid-2025.

By the end of the year, RGTI expects to release a system with over 100 qubits with a targeted 2x reduction in error rates from the current level.

Overall RGTI ranks 7th on our list of Monday's worst performing stocks. While we acknowledge the potential of RGTI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RGTI but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

 

Disclosure: None. This article is originally published at Insider Monkey.