The year got off to a great start for Super Micro Computer, a server manufacturer that took advantage of the artificial intelligence (AI) craze to climb the stock market. On March 8, the shares of the company founded in 1993 reached an all-time high of $122.90 and the company reached a stock market value of more than $67 billion.
Now, however, the company is on the verge of being expelled from the Nasdaq and the S&P 500, where it was included this year. All because of the delivery of the report and accounts for the fiscal year ending in June. In August, Super Micro indicated that it would delay the publication of the document and the deadline ends in the middle of this month. Since then, shares have fallen 57%. That same month, Hinderburg revealed a strong short position and raised doubts about the financial data revealed by the company.
Doubts about whether the technology company will be able to meet the necessary requirements to remain on the Nasdaq and the main index of the New York Stock Exchange (NYSE) increased after last week Ernst & Young (EY) announced that it was no longer auditing the company’s accounts. company due to “lack of confidence in the data transmitted by the administration”.
Super Micro contested EY’s justifications and said it was looking for a new auditor, but doubts about whether the deadlines could be met have been growing.
“I think they will probably end up leaving the Nasdaq and S&P 500 because of the deadlines,” Wedbush analyst Matt Bryson said in an interview with Bloomberg.
News that regulators will be investigating complaints from former employees that the company inflated revenue also casts greater uncertainty.
“We believe there is a significant risk that old financial reports will have to be revised after a new auditor is hired,” analysts at Needham, which stopped covering the company’s shares, wrote in a note.
If it comes to fruition, this will not be the first time that the company has been expelled from the indexes. In 2019 this happened after Super Micro missed the deadlines for publishing the annual report and accounts and several quarterly reports. The company would return to the index in 2020.
Matt Bryson pointed out that the last time Super Micro dropped from the indexes, the company’s growth stagnated for two years.
The company presents its quarterly accounts this Tuesday, after the end of trading. Today, shares advanced 6.42%, to $27.70.
Source: www.jornaldenegocios.pt
