TL;DR

RGTI’s stock plummeted 50% overnight due to a CEO’s comment on quantum computing. This suggests the high stock price wasn’t based on strong fundamentals. Buying the dip is more about FOMO than a calculated investment.

Story

Imagine a tech CEO casually mentions quantum computing. Poof! A company’s stock price halves overnight. That’s RGTI’s story. Fifty percent of its value vanished, not due to bad earnings or product failures, but words. This raises a red flag. What was truly supporting the $18+ share price? It wasn’t solid financials or fundamentals. So, why buy now? Are you gambling on the CEO retracting his statement or another CEO contradicting him? That’s risky. This isn’t investing; it’s FOMO (Fear Of Missing Out) and denial. Remember, markets can stay irrational longer than you can stay solvent. Some additional points to consider are that RGTI’s management set the fair value at $2 per share in a late November offering. Some investors got burned, acknowledging the hype. The stock’s rapid 100% rise in a month makes it prone to faster falls. The 52-week low is $0.66, indicating volatility. The hype around quantum computing might be premature, considering its 5–10 year timeline for revenue generation. Meanwhile, established companies like Google are already gaining market share in this sector.

Advice

Don’t let FOMO drive your investment decisions. Base your investment strategy on solid fundamentals and financial analysis, not hype or speculation.

Source

https://www.reddit.com/r/wallstreetbets/comments/1hwpbpx/buying_the_rgti_dip_stop_think/