Super Micro Computer stock was attempting to rebound early Tuesday after being the S&P 500’s biggest laggard at the start of the week.
Super Micro, which trades under the ticker SMCI, has lost more than 17% in the past week coming into Tuesday’s session.
The stock, which trades under the ticker SMCI, was up 4.2% at $34.84 in morning trading. It fell 8.3% on Monday. Coming into the session, the shares have lost more than 17% in the past week.
The server maker delayed filing its earnings for last year and the stock’s slide is continuing even though the company has secured an extension from the Nasdaq until Feb. 25 to file its accounts, alleviating the threat of being delisted.
The company’s auditor Ernst & Young resigned in October, saying it didn’t want to be associated with Super Micro’s financial statement—a decision with which Super Micro said it disagreed. The company subsequently said an internal inquiry showed no evidence of fraud by management and it has since appointed BDO as its new auditor.
Monday’s decline came following a Bloomberg report that the company is looking to sell more shares and bonds to shore up its finances. Super Micro declined to comment on the report.
The declines raise the question of what the company could do to get the stock price heading higher. With the frenzy around artificial intelligence technology still running hot, there is still plenty of demand for Super Micro’s products. Dell Technologies, a rival server maker, has gained 2% over the past five days.
For now, it looks like the cloud over Super Micro won’t begin to lift until it makes its finances public. It also needs to find a new chief financial officer and chief accounting officer as per the recommendations of the special committee following the internal investigation. The resignation of its previous auditor will remain a drag until it does.
Comments