From Nasdaq: 2024-11-14 02:29:34

Super Micro Computer stock (NASDAQ: SMCI) dropped by 6% in Tuesday’s trading and is down 54% over the past month due to corporate governance concerns and financial reporting issues. Delays in filing annual financial statements put Super Micro at risk of being delisted from the Nasdaq by November 16th. Ernst & Young’s resignation adds to the uncertainty. Despite past strong returns, caution is advised with SMCI stock.

Super Micro has a history of delisting from the Nasdaq in 2018 due to revenue recognition practices, only relisted after settling with the SEC. With $15 billion in revenue, finding a new auditor from Big Four firms is crucial. Despite strong revenue growth, the stock is trading at a low multiple. However, investing in SMCI stock is risky given the uncertainties surrounding financial reporting and potential delisting.

Returns for SMCI stock have been negative in November 2024 and year-to-date, contrasting with positive returns for the S&P 500 and Trefis Reinforced Value Portfolio. Trefis High Quality Portfolio has outperformed the S&P 500 consistently. Investors should exercise caution and consider market-beating portfolios for more stable returns.



Read more at Nasdaq: Delisting Deadline Looms For Super Micro Stock