Adrian Johnson
TLDR:
Key Points:
- Super Micro Computer’s stock dropped over 20% after announcing a delayed annual report and facing allegations from short-selling firm Hindenburg Research.
- The company cited the need for more time to assess its internal financial controls as the reason for the delayed filing.
Summary:
Shares of Super Micro Computer plummeted by 24% after the company revealed that it would likely not file its annual report on time. The tech company also faced allegations from Hindenburg Research, which claimed to have found evidence of financial manipulation, undisclosed related party transactions, sanctions and export control failures, and customer issues. Super Micro attributed the delay in filing to the need for more time to assess the design and operating effectiveness of its internal controls over financial reporting.
The stock drop also followed JPMorgan analysts’ note that some of Hindenburg’s allegations were difficult to verify and lacked details about the alleged wrongdoings from the company. Despite multiple outlets trying to reach Super Micro for comment, the company did not respond. CEO Charles Liang’s estimated net worth of $2.1 billion was also affected by the stock drop, decreasing by nearly $800 million.
Super Micro’s stock had been performing well earlier in the year, primarily due to its business with Nvidia and the demand for server space in the AI sector. However, the recent slump threatens to erase those gains, as the stock is down over 51% in the last six months. The company reported a significant increase in net income last quarter, but missed expectations on earnings per share.
Overall, the delayed filing and allegations from Hindenburg Research have had a significant impact on Super Micro’s stock price and the company’s financial outlook. It remains to be seen how the company will address these challenges and regain investor confidence.
