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Super Micro Computer Stock Collapse: Is the Worst Over?

Eli GrantSunday, Nov 17, 2024 7:35 pm ET
3min read
Super Micro Computer (SMCI) stock has been on a rollercoaster ride in 2024, with its share price plummeting over 80% from its all-time high, raising questions about the company's future and whether the worst is over for investors. This article explores the factors behind the stock's collapse, the potential consequences for the company, and the outlook for its recovery.

The stock's decline began in August 2024, following a scathing short report by Hindenburg Research, which alleged accounting irregularities, self-dealing with executive family members, and evading U.S. foreign sanctions. The report sent shockwaves through the market, leading to a significant sell-off in SMCI shares. Since then, the company has faced a series of setbacks, including the resignation of its auditor, Ernst & Young, and delays in filing its annual report, risking Nasdaq delisting.

The delayed filings have put Super Micro Computer in a precarious position, as it faces a potential delisting from the Nasdaq exchange. If delisted, the stock would trade over the counter (OTC), leading to lower volume and higher transaction costs, potentially weighing on demand. Additionally, a delisting could further shake investor confidence in the company's management, exacerbating the existing issues.

SMCI Basic EPS, Basic EPS YoY


Despite the dire situation, there are reasons to believe that the worst may be over for SMCI stock. The company has taken steps to address the accounting irregularities and has appointed a special committee to review the situation. Although no evidence of fraud or misconduct has been found yet, the committee's investigation is ongoing. Moreover, Super Micro Computer's revenue and earnings have grown significantly in 2024, indicating that the company's core business remains strong.

In conclusion, the Super Micro Computer stock collapse has been a result of a combination of factors, including accounting irregularities, regulatory investigations, and auditor resignations. While the company faces significant challenges, including the risk of Nasdaq delisting, there are reasons to believe that the worst may be over for investors. As the company works to address the accounting issues and regain compliance with Nasdaq listing requirements, investors should closely monitor the situation and consider the potential for a turnaround in the stock's performance.
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BenGrahamButler
11/18
$SMCI Let's aim for $100.
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Ok-Afternoon-2113
11/18
$SMCI I couldn't resist the temptation and ended up buying some shares tonight. No way I'm going to miss out on all the excitement!
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VegetaIsSuperior
11/18
$SMCI is set to rise by over 5 dollars tomorrow!
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FTCommoner
11/18
I expect every dip in $SMCI to be met with buying opportunities.
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Ok-Afternoon-2113
11/18
$SMCI halted in Germany at $35
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bmrhampton
11/18
$SMCI has hit 23 once more. Observe the significant volume, as well as the frantic efforts by shorts and market makers to cover their positions. Let’s initiate a 25-point rise when they release the PR, then drive it all the way to $30. Let’s go for it!
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BURBEYP
11/18
$SMCI Just 30 minutes until the 24-hour market kicks off!
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deevee12
11/18
$SMCI's overnight price was $30.
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zarrasvand
11/18
$SMCI's implied volatility signals a potential move of up to 50%.
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Fidler_2K
11/18
Thanks to $SMCI for an amazing week, the best we've had all year. We're grateful that you're doing well and anticipate big things ahead. We forgive the bears for their misplaced faith and the bitterness and wrath it brought them, and we bless them. We're thrilled with the good news for SMCI and the alignment of events for our benefit, not evil. With Isaiah 54:17 and Psalm 91:9-10 as our guide, we expect an extension of 120 days and the signing and completion of an audit within that timeframe. We also appreciate NVDA's impressive earnings, which have lifted our spirits and boosted our share price. And lastly, we're grateful for the biggest short squeeze of the year. Amen to that!
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