Quantum Computing Stocks Are Facing Selling Pressure Tuesday: What's Going On?

Rigetti Computing Inc RGTI is leading quantum stocks lower Tuesday morning after the company reported mixed financial results for the first quarter.

What Happened: Rigetti Computing reported first-quarter revenue of $1.47 million, missing analyst estimates of $2.55 million, according to Benzinga Pro. The company reported first-quarter earnings of 13 cents per share, beating estimates for a loss of 6 cents per share.

Rigetti highlighted recent business developments, including the company’s selection to participate in DARPA’s quantum benchmarking initiative, awards to develop chip fabrication technology and advance superconductor quantum computing and the closing of an investment by Quanta Computer.

The company said it had $237.7 million in cash, cash equivalents and available-for-sale investments as of April 30.

“Rigetti is proud to be awarded important government-funded projects in the U.S. and U.K. to advance our technology, which demonstrates our continued leadership in superconducting quantum computing,” said Subodh Kulkarni, CEO of Rigetti Computing.

“We also are making great strides in developing innovative approaches to scaling to higher qubit count systems, which is possible due to our open and modular system architecture, in-house full-stack expertise, and world-class partners.”

Check This Out: Rigetti Stock Sinks After Q1 Revenues Miss Estimates: Details

The weakness in Rigetti appears to be weighing on other quantum computing stocks including IonQ Inc IONQ and D-Wave Quantum Inc QBTS, which both moved lower alongside Rigetti in Monday’s after-hours session. IonQ was down about 1% and D-Wave was down approximately 1.6% at the time of publication Tuesday.

IonQ and D-Wave Quantum reported financial results for the first quarter last week.

RGTI Price Action: Rigetti Computing shares were down 9.26% at $10.47 at the time of publication, according to Benzinga Pro.

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Photo: Bartlomiej K. Wroblewski/Shutterstock.