Among the SPAC-related companies many growth investors have been excited about in the past, Rigetti (NASDAQ:RGTI) is one company that’s been on the radar for many investors. Unfortunately, RGTI stock has seen price action similar to other de-SPAC companies, on a steady trajectory lower. Today, the quantum computing company’s decline of more than 30% is the latest blow for investors who have stuck with this company for any period of time.
Rigetti went public at a valuation of roughly $1.5 billion in March of this year. After today’s decline, this stock has now lost more than 90% of its value, trading at a market capitalization of roughly $120 million.
Today’s leg lower appears to be the direct result of an announcement tied to the departure of Rigetti’s CEO. Chad Rigetti will reportedly leave the company on Dec. 15. In the interim, the company’s general counsel will fill in as CEO until a successor is found.
Let’s dive into what to make of this incredible price action today.
Why Is RGTI Stock Getting Hit So Hard Today?
This announcement clearly caught the market by surprise. In some respects, this is interesting, considering Rigetti previously announced that he would be transitioning away from his role as CEO in October.
That said, Rigetti’s previous announcement appears to have led investors to believe that he would still be involved in the company’s product and technology development. Today’s announcement that Mr. Rigetti is leaving the firm altogether signals potential internal issues with the company warranting such a move.
Like many executive departures, little details on this front are available to investors. Thus, there’s plenty of room to speculate on why this key departure came about.
Personally, I think today’s price action in RGTI stock is emblematic of an ongoing shift in the market. Investors are seeking safety over growth. For companies like Rigetti battling other issues, that’s not a great thing.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.