Super Micro Computer stock surges 30% but faces financial reporting and governance concerns

From Nasdaq: 2024-12-02 01:04:14

Server maker Super Micro Computer stock (NASDAQ: SMCI) has surged nearly 30% in the last five trading days, now trading at $35 per share. The company hired BDO as its public auditor, replacing Ernst & Young, to avoid delisting from Nasdaq. However, risks persist as the new auditor needs time to rework financial statements.

Despite recent gains, SMCI stock is still down 70% from all-time highs. The company faces delays in filing overdue financial reports, raising concerns about financial reporting and corporate governance. Super Micro’s success in the generative AI space doesn’t outweigh these risks, making it a risky investment at this time.

Super Micro’s financial troubles began after reports of accounting irregularities and a potential DOJ investigation. With a history of delayed reports and internal control issues, the company’s long-term viability is in question. Investors should exercise caution with SMCI stock until core accounting issues are resolved and the new auditor signs off on the accounts.



Read more at Nasdaq: What’s Next For Super Micro Stock?