Mon Dec 30 14:40:00 UTC 2024: **Mad Money’s Cramer Cautions Investors on Quantum Computing Stocks, Highlights Diversification**
NEW YORK, NY – Financial expert Jim Cramer issued a warning about investing in quantum computing stocks, advising caution despite their recent surge. While acknowledging the potential of the sector, Cramer, host of CNBC’s “Mad Money,” described quantum computing stocks, including Rigetti Computing (NASDAQ:RGTI), as “parabolic” and purely speculative. He stated that while some companies in the field might have long-term potential, their current market performance is driven by speculation, not necessarily fundamental strength.
This warning came as part of a broader discussion on investing strategies Cramer shared, emphasizing the importance of doing thorough research, diversifying investments across at least five sectors, and gradually adjusting positions to avoid impulsive buying or selling. He also stressed the difference between “damaged stocks” and “damaged companies,” suggesting investors should focus on companies facing temporary setbacks, not those with fundamental flaws.
Rigetti Computing, which designs and builds quantum computers, saw its stock price rise over 1,550% in the past year. However, Cramer highlighted a significant disparity between the company’s market capitalization (over $4.8 billion) and its Q3 revenue of $2.4 million—a decline from the previous year’s Q3.
Despite Rigetti’s placement on a list of stocks Cramer recently discussed, the article emphasizes that artificial intelligence (AI) stocks may offer more promising returns. The piece concludes by recommending diversification and thorough research as key strategies for minimizing investment risk.
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