Bulls Pile On Rigetti Computing Stock Ahead of Earnings

Quantum computing company Rigetti Computing Inc (NASDAQ:RGTI) will report third-quarter earnings tomorrow, Tuesday, Nov. 10, after the market closes. Zacks Consensus Estimates call for an earnings loss of six cents per share on revenue of $3.30 million, representing a year-over-year decrease of 100% and increase of 69%.

RGTI was last seen up 0.9% at $163.50, pacing for a fourth win out of the past five sessions as the stock continues to rebound off of its 18-month low. Year to date, the shares have shed 42%. 

Rigetti has a mostly negative post-earnings history. Looking back at the last 12 quarterly reports, the stock finished its next session higher just three times, averaging a 3.1% loss. Though following its report in August, RGTI enjoyed a solid 8.5% pop. This time around, the options pits are pricing in a 11.8% post-earnings move this time around, regardless of direction.

Echoing the bearish sentiment, the stock's short interest ratio is extremely elevated. The 71.04 million shares sold short account for 21.65% of RGTI's available float. 

Options traders have been largely optimistic ahead of the report, however. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), RGTI's 50-day call/put volume ratio of 3.58 ranks in the 94th percentile of its annual range.