Super Micro Computer stock crashed 28.6% due to concerns about accounting practices and U.S. sanctions evasion

From Nasdaq: 2024-08-31 07:00:00

Super Micro Computer (NASDAQ: SMCI) stock plummeted 28.6% last week following bearish coverage by Hindenburg Research. The firm raised concerns about accounting practices and accused the company of evading U.S. sanctions. Supermicro’s delayed 10-K filing added to the scrutiny, prompting Wells Fargo to lower its price target on the stock.

Hindenburg’s report revealed $983.1 million in suspicious payments made by Supermicro to private companies owned by the CEO’s family. The company has a history of accounting scandals and allegations of selling restricted technologies to Chinese customers. Supermicro’s decision to postpone its 10-K filing further undermined investor confidence in the company’s prospects.

Wells Fargo reduced its price target on Supermicro due to uncertainty about its financials and past accounting issues. Meanwhile, Bank of America put the stock under review, citing difficulties in assessing the company’s fundamentals. Investors are advised to carefully evaluate Super Micro Computer’s current situation before making any investment decisions.



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