Super Micro Computer Inc's stock plunged 6.23% in after-hours trading on Friday, following a tumultuous week where shares declined nearly 17% amid auditor controversies and concerns over delayed financial filings.
The company's woes stem from the resignation of Ernst & Young as its auditor, citing a lack of confidence in Super Micro's financial statements. While an independent investigation cleared the company of fraud allegations, investors remain skeptical as Super Micro now faces a February 25 deadline to file overdue earnings reports to avoid potential delisting from the Nasdaq.
Adding to the pressure, Super Micro is likely to be removed from the Nasdaq 100 index, further dampening sentiment around the stock. Despite its innovative AI server solutions and robust revenue projections, the company's recent accounting issues and management challenges have raised concerns among investors, causing shares to plummet from a record high of $119 in March to just $37 today.