Super Micro Computer Stock Drops: Financial Struggles and Delayed Earnings Impact Shares
Super Micro Computer, a prominent server maker, is facing financial turmoil that’s driving its stock price down. The company’s shares have plunged by more than 17% in the past week, with investors reacting to news that it is looking to raise capital. According to reports, Super Micro has hired the investment bank Evercore and is considering issuing new shares and bonds to stabilize its finances.
The trouble began after the company delayed filing its earnings with the Securities and Exchange Commission (SEC). Although an internal investigation found no evidence of wrongdoing, the delay has raised concerns among investors. Super Micro has until February 25 to file the required reports, which keeps the immediate threat of being delisted from the Nasdaq at bay.
On Monday, Super Micro’s stock dropped another 7.5%, bringing the total losses over the past five days to 24%. The stock has been volatile this year, with a high of $119 in March followed by a significant drop to $18. Despite this recent decline, the stock has gained nearly 60% over the past month. However, the company’s struggles led to its removal from the Nasdaq 100, an index of the exchange’s largest non-financial companies, due to its smaller market value.
