SMCI: Buy opportunity or a signal for caution amid auditor exit
The unfolding challenges at Super Micro Computer (NASDAQ: SMCI) continue to stir market uncertainties, especially as it edges closer to a potential delisting from Nasdaq.
SMCI stock price falls more than 20% as Super Micro Computer faces Nasdaq delisting
More bad news for Super Micro Computer, Inc. (Nasdaq: SMCI): Shares sank more than 20% on Wednesday after the AI server maker missed earnings estimates, adding to its mounting problems. It also said it's unsure when it will file annual results for the latest fiscal year.
Super Micro Computer: Delisting Fears Played Out As Investors Bail
Super Micro Computer stock plunged nearly 20% on November 6 as its business update was a massive disappointment. Supermicro didn't provide sufficient clarity over its delayed 10K, new auditor engagement, spurring increasing fears of a potential delisting. Investors are likely pricing in a further reduction in guidance, as there is little clarity about whether SMCI could regain timely compliance with Nasdaq's listing requirements.
Why Is Super Micro Stock Crashing, and Should You Buy the Dip?
The company told investors that revenue growth is slowing down from its blistering pace.
Super Micro Computer: I'm Doubling Down On This Panic
Despite Super Micro Computer's heavy dip, in my opinion, the current negative market sentiment seems exaggerated, as most of the negative developments are probably already priced in. Super Micro generated preliminary fiscal Q1 net revenues between $5.9 billion and $6 billion, an 181% increase over the previous quarter. It missed the management's guidance. The market clearly didn't like the QoQ dynamics and guidance. SMCI kept facing severe headwinds in its margins, especially in comparison to Dell Technologies and Hewlett Packard Enterprise.
Super Micro Computer Q1: Red Flags, Lessons Learned, And Hope Ahead (Rating Downgrade)
Despite beating revenue estimates in Q1, SMCI faces significant regulatory concerns, including auditor Ernst & Young's resignation, previous SEC charges, and potential Nasdaq delisting. A 35.5% margin of safety exists if regulatory issues are resolved favorably; however, in a conservative scenario with negative outcomes, this shrinks to just 9.62%. Given Super Micro Computer's history of accounting malpractice and ongoing scrutiny, my rating is downgraded to Hold, advising caution due to potential long-term risks.
Why Super Micro Computer Stock Is Crashing Again Today
Supermicro published preliminary quarterly results Tuesday, but the report may have raised more questions than it answered.
Expect "Multiple Levels of Disruption" with SMCI
Supermicro (SMCI) dipped to a 52-week low following a meteoric rise earlier this year. Matthew Bryson and Ed Butowsky look ahead to Supermicro's uncertain future, pointing to accounting "red flags" as the company's biggest hurdle to rebound.
Super Micro Computer unknowns remain, leading broker to cut target again
Super Micro Computer Inc (NASDAQ:SMCI) said its 'special committee' found no wrongdoing but broker Wedbush cut its target price on the stock for the second time this week. This follows preliminary earnings from the server maker overnight, where revenue indications from the previous quarter and the coming quarter were trimmed.
Super Micro Computer Stock Tumbles Again. Is the Worst Over Yet?
A disappointing preliminary earnings report weighed on the struggling stock.
Super Micro shares plummet 22% after financial update heightens investor concerns
Super Micro's stock fell to its lowest since mid-2023 after the company issued unaudited quarterly results that added to investor concerns. Preliminary results for the last quarter showed weaker-than-expected revenue, and the company's guidance was also light.
I Just Sold All of My Super Micro Computer Stock. Should You Follow Suit?
Supermicro's financial auditor just resigned, adding to the company's recent turmoil.
