BERKELEY, Calif. - Rigetti Computing, Inc. (NASDAQ: RGTI), known for its hybrid quantum-classical computing systems, is set to join the Russell 3000® Index at the start of U.S. equity markets on July 1, as announced today.
The inclusion follows a preliminary list of additions posted on May 24 and is part of the 2024 Russell U.S. Indexes annual reconstitution. The reconstitution process captures the 4,000 largest U.S. stocks by market capitalization as of April 30, annually updating the Russell indexes to reflect market changes.
Rigetti's addition to the Russell 3000® Index signifies automatic inclusion in either the Russell 1000® or Russell 2000® Index, as well as corresponding growth and value style indexes. FTSE Russell determines index membership based on objective market-capitalization rankings and style attributes.
Dr. Subodh Kulkarni, CEO of Rigetti, noted that the inclusion in the Russell 3000® Index will enhance the visibility of Rigetti and the quantum computing sector to a broader market. FTSE Russell, which manages the indexes, notes that around $10.5 trillion in assets were benchmarked against their U.S. indexes as of December 2023. The Russell indexes, now in their 40th year, are widely utilized by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.
Rigetti has been a player in the quantum computing field since 2017, offering its services through the Rigetti Quantum (NASDAQ:QMCO) Cloud Services platform. The company has developed a multi-chip quantum processor and manufactures its chips at Fab-1, a dedicated quantum device manufacturing facility.
The inclusion of Rigetti in the Russell 3000® Index reflects the company's market capitalization growth and its role in the evolving U.S. economy. It also underscores the company's progress in the quantum computing industry, as it aims to put quantum hardware in the hands of researchers and pursue important R&D.
This article is based on a press release statement from Rigetti Computing, Inc.
InvestingPro Insights
As Rigetti Computing, Inc. (NASDAQ: RGTI) prepares for its inclusion in the Russell 3000® Index, investors are closely monitoring the company's financial health and market performance. According to InvestingPro data, Rigetti's market capitalization stands at a modest $180.52 million. Despite a challenging financial landscape, the company has maintained a price to book ratio of 1.56 for the last twelve months as of Q1 2024, which suggests assets are valued relatively close to the company's market valuation.
However, the company's financials reflect some concerns, with a negative price-to-earnings (P/E) ratio of -2.56 indicating that it is not currently generating profits. Additionally, Rigetti's revenue growth for the last twelve months was negative at -2.58%, though it did show a quarterly surge of 38.66% in Q1 2024.
InvestingPro Tips highlight that Rigetti is quickly burning through cash and that its stock price has been quite volatile. Moreover, the company's stock has fared poorly over the last month, with a 21.64% decline, and has seen a significant drop of 44.15% over the last three months.
These metrics may raise caution for investors looking for stability or immediate profitability, as analysts do not anticipate Rigetti will be profitable this year. Nonetheless, for those interested in the company's potential, Rigetti does hold more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations, providing some financial flexibility.
Investors seeking a deeper analysis of Rigetti's prospects can explore additional insights with InvestingPro. There are currently 11 InvestingPro Tips available for RGTI, offering a comprehensive look at various aspects of the company's financial health and market performance. For those interested in leveraging these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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