Rigetti Computing Inc (NASDAQ: RGTI) tanked more than 13% this morning following news its chief executive, Subodh Kulkarni, has no stake whatsoever in the quantum technology company.
In May, Kulkarni exercised options to acquire 1,000,000 shares, only to sell them immediately – leaving him with zero ownership in RGTI.
Rigetti stock has, nonetheless, been a rewarding investment in 2025.
Despite today’s pullback, it’s trading at about 8x its price in mid-January.
Why Kulkarni’s move is concerning for Rigetti stock
In the high-growth tech sector, especially emerging fields like quantum computing, insider ownership is more than symbolic – it’s a signal of conviction.
Kulkarni’s decision to liquidate his entire stake, worth over $12 million, sends a troubling message.
Investors expect leaders to ride the volatility alongside them, not cash out at the first opportunity.
Compounding the issue, other insiders like Director Ray O. Johnson have also offloaded shares in recent months.
While some Reddit users defended Kulkarni’s honesty – “he has openly said that revenues are not coming anytime soon” – the optics of a CEO with no equity exposure are hard to ignore.
It suggests a lack of personal commitment to Rigetti’s future – and that sure is a red flag for RGTI stock.
RGTI shares remain a speculative bet
Caution is warranted on buying Rigetti shares also because the firm’s challenges go far deeper than executive exits. It remains unprofitable, with mounting losses and limited revenue visibility.
Despite an ambitious roadmap, RGTI has yet to demonstrate commercial traction or scalable quantum solutions. Its burn rate is high, and dilution risk looms large as it seeks fresh capital.
Valuation metrics are difficult to justify, especially when compared to peer like IBM and Alphabet, which have diversified quantum initiatives backed by robust cash flows.
Rigetti’s standalone quantum model is speculative, and its technology, while promising, lacks real-world deployment.
Investors loading up on RGTI shares are essentially wagering on a moonshot with little margin for error. In this context, insider selling only amplifies the risk.
Is it worth investing in Rigetti today?
Quantum computing may be the future, but Rigetti’s present is riddled with uncertainty.
Kulkarni’s decision to hold zero RGTI shares undermines investor confidence at a time when belief in the mission is critical.
While some may argue that transparency is refreshing, most view it as a vote of no confidence.
In a sector built on bold vision and long-term bets, leadership without equity is a warning sign.
The company’s technology might still evolve, but for now, Rigetti stock looks more like a speculative trade than a conviction buy.
What’s also worth mentioning is that even though Wall Street’s consensus rating on this quantum computing stock remains at “buy”, it’s already trading nearly 100% above the mean target of about $25 at the time of writing.
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