Quantum computing is gaining traction as an investment opportunity, with Rigetti Computing (RGTI) and D-Wave Quantum (QBTS) emerging as key players. Rigetti’s stock has surged 135% over the past year, while D-Wave outpaced it with a remarkable 237% increase. Both companies, however, are currently operating at a loss, making profitability less of a focus than their potential for rapid scaling over the next five years.
Revenue generation is a critical metric for assessing these firms’ market viability. D-Wave reported $24 million in revenue last year, significantly overshadowing Rigetti’s $7 million. Despite their losses—$18 million for Rigetti and $42 million for D-Wave in the last quarter—investors are more concerned with which company can achieve consistent growth and market penetration as quantum technology develops.
The takeaway for market professionals is to closely monitor the upcoming quarterly reports from both companies. These will provide insights into their revenue trajectories and scaling capabilities, which are crucial for determining their long-term investment potential in this nascent industry.
Source: fool.com