{"id":107355,"date":"2024-09-27T02:42:18","date_gmt":"2024-09-26T19:42:18","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=107355"},"modified":"2024-09-27T02:42:18","modified_gmt":"2024-09-26T19:42:18","slug":"super-micro-computer-stock-plunges-on-report-of-doj-probe","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=107355","title":{"rendered":"Super Micro Computer stock plunges on report of DOJ probe"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div>\n<p>AI server maker Super Micro Computer (<a data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/finance.yahoo.com\/quote\/SMCI\/\" data-ylk=\"slk:SMCI;cpos:1;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">SMCI<\/a>) stock tumbled 15% Thursday after The Wall Street Journal reported that the company is <a data-i13n=\"cpos:2;pos:1\" href=\"https:\/\/www.wsj.com\/tech\/justice-department-probes-server-maker-super-micro-computer-2ca6a4d3?adobe_mc=MCMID%3D27433318039020715652815689347660931118%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1727363464&amp;_gl=1*1qiuoag*_gcl_au*MTgyMzg5MzU5Ny4xNzI2Nzc4MTQ5*_ga*MzgyNTU1ODA3LjE3MjY3NzgxNDk.*_ga_K2H7B9JRSS*MTcyNzM2MzQ0Ny40LjAuMTcyNzM2MzQ0Ny42MC4wLjA.\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:being probed by the US Department of Justice;cpos:2;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">being probed by the US Department of Justice<\/a>.<\/p>\n<p>The Journal, citing unnamed sources, said the DOJ is investigating the company for potential accounting violations. The issue was first brought to light by the short-selling firm Hindenburg Research in August in a <a data-i13n=\"cpos:3;pos:1\" href=\"https:\/\/hindenburgresearch.com\/smci\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:report;cpos:3;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">report<\/a> that accused Super Micro Computer of \u201cglaring accounting red flags,&#8221; as well as \u201cundisclosed related party transactions&#8221; and \u201csanctions and export control failures.\u201d<\/p>\n<p>Super Micro declined to comment on the matter.<\/p>\n<p>Super Micro makes AI server equipment that uses Nvidia\u2019s GPUs, and Wall Street analysts believe it is <a data-i13n=\"cpos:4;pos:1\" href=\"https:\/\/www.morningstar.com\/news\/marketwatch\/20240122785\/why-supermicro-is-mopping-up-the-floor-with-the-competition\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:a major supplier of hardware to Meta;cpos:4;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">a major supplier of hardware to Meta<\/a>. Its business flourished at the start of 2024 as the tech industry has created a slew of AI software with increasing power demands \u2014 and hence, demand for products like Supermicro\u2019s. It\u2019s one of the AI-driven stocks that has surged to record levels, and even with its decline Thursday, shares are still up 57% from last year.<\/p>\n<p>Its gains <a data-i13n=\"cpos:5;pos:1\" href=\"https:\/\/press.spglobal.com\/2024-03-01-Super-Micro-Computer-and-Deckers-Outdoor-Set-to-Join-S-P-500-Others-to-Join-S-P-100,-S-P-MidCap-400-and-S-P-SmallCap-600\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:earned the company a spot in the S&amp;P 500;cpos:5;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">earned the company a spot in the S&amp;P 500<\/a> at the beginning of the year. But the stock has fallen from highs above $1,200 in mid-March before joining the index. Shares dropped in early August when the company <a data-i13n=\"cpos:6;pos:1\" href=\"https:\/\/www.investopedia.com\/super-micro-computer-q4-fy-2024-earnings-8691160\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:missed Wall Street's high expectations;cpos:6;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">missed Wall Street&#8217;s high expectations<\/a> in its fiscal fourth quarter earnings report, and later in the month again when the company <a data-i13n=\"cpos:7;pos:1\" href=\"https:\/\/apnews.com\/article\/super-micro-computer-accounting-hindenburg-short-seller-51a31837170cab6175d1179dbf297014\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:delayed filing its annual 10-K report to the SEC;cpos:7;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">delayed filing its annual 10-K report to the SEC<\/a>.<\/p>\n<p>In reference to both the scathing Hindenburg report and Super Micro&#8217;s delayed filing, CEO Charles Liang wrote in a letter to customers on Sept. 3, &#8220;Neither of these events affects our products or our ability and capacity to deliver the innovative IT solutions that you rely on every day. Our production capabilities are unaffected and continue operating at pace to meet customer demand.&#8221;<\/p>\n<p>The company in August reported earnings per share of $6.25 for the fourth quarter, lower than the $8.25 analysts had expected. Its revenue of $5.3 billion came in just below Wall Street&#8217;s estimate of about $5.32 billion, but more than doubled from the prior year.<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\" style=\"max-height: 640px\">\n<div>\n<div class=\"caas-img-container caas-img-loader\" style=\"padding-bottom:67%\"><img decoding=\"async\" class=\"caas-img caas-lazy has-preview\" alt=\"Charles Liang, CEO of Super Micro, at a keynote during the COMPUTEX 2023 in Taiwan.  (Photo by Walid Berrazeg\/SOPA Images\/LightRocket via Getty Images)\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/fTE.iUAMJ5LlNbps8mkQMw--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2024-03\/90a5dc60-e264-11ee-ae6f-440e52dbb685\"\/><img decoding=\"async\" alt=\"Charles Liang, CEO of Super Micro, at a keynote during the COMPUTEX 2023 in Taiwan.  (Photo by Walid Berrazeg\/SOPA Images\/LightRocket via Getty Images)\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/fTE.iUAMJ5LlNbps8mkQMw--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA--\/https:\/\/s.yimg.com\/os\/creatr-uploaded-images\/2024-03\/90a5dc60-e264-11ee-ae6f-440e52dbb685\" class=\"caas-img\"\/><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">Charles Liang, CEO of Super Micro, at a keynote during the COMPUTEX 2023 in Taiwan. (Photo by Walid Berrazeg\/SOPA Images\/LightRocket via Getty Images)<span class=\"caption-credit\"> (SOPA Images via Getty Images)<\/span><\/figcaption><\/p>\n<\/figure>\n<p>Liang said in his letter, &#8220;[W]e don\u2019t anticipate any material changes in our fourth quarter or fiscal year 2024 financial results.&#8221; Still, JPMorgan analyst Samik Chatterjee recently downgraded the stock to Neutral from Overweight, <a data-i13n=\"cpos:8;pos:1\" href=\"https:\/\/finance.yahoo.com\/m\/88397eef-6996-32e8-abc2-5ee88ed044c3\/super-micro-stock-drops-after.html\" data-ylk=\"slk:nearly halving his price target;cpos:8;pos:1;elm:context_link;itc:0;sec:content-canvas;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link  yahoo-link\">nearly halving his price target<\/a> from $950 to $500. Shares fell as low as $373 Thursday before recovering in the afternoon to around $400.<\/p>\n<p>Nearly 37% of Wall Street analysts still recommend buying the stock as of Thursday afternoon, according to Bloomberg consensus estimate. Analysts see shares rising to $685 over the next 12 months.<\/p>\n<p><button class=\"link caas-button readmore-button-finance collapse-button readmore-button-class\" data-ylk=\"elm:readmore;slk:Story continues\"><span class=\"readmoreButtonText\">Story continues<\/span><\/button><\/p>\n<p><em>Laura Bratton is a reporter for Yahoo Finance.<\/em><\/p>\n<p><a data-i13n=\"cpos:9;pos:1\" href=\"https:\/\/finance.yahoo.com\/topic\/stock-market-news\/\" data-ylk=\"slk:Click here for the latest stock market news and in-depth analysis, including events that move stocks;cpos:9;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><strong>Click here for the latest stock market news and in-depth analysis, including events that move stocks<\/strong><\/a><\/p>\n<p><a data-i13n=\"cpos:10;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/\" data-ylk=\"slk:Read the latest financial and business news from Yahoo Finance;cpos:10;pos:1;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><strong>Read the latest financial and business news from Yahoo Finance<\/strong><\/a><\/p>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/finance.yahoo.com\/news\/super-micro-computer-stock-plunges-on-report-of-doj-probe-185516211.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>AI server maker Super Micro Computer (SMCI) stock tumbled 15% Thursday after The Wall Street Journal reported that the company is being probed by the US Department of Justice. The &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=107355\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-107355","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/107355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=107355"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/107355\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=107355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=107355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=107355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}