{"id":123875,"date":"2024-11-09T14:25:58","date_gmt":"2024-11-09T07:25:58","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=123875"},"modified":"2024-11-09T14:25:58","modified_gmt":"2024-11-09T07:25:58","slug":"is-super-micro-computer-stock-a-buy-3-things-to-watch","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=123875","title":{"rendered":"Is Super Micro Computer Stock a Buy? 3 Things to Watch."},"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 class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><span>With shares down by 78% from an all-time high reached in March, <\/span><strong><span>Super Micro Computer<\/span><\/strong><span> <span class=\"ticker\">(NASDAQ: SMCI)<\/span> might be one of the first dominoes to fall as the artificial intelligence (AI) hype cycle reaches a possible conclusion. <\/span><span>But <\/span><span>so far,<\/span><span> this crash has little to do with company fundamentals and seems more related to allegedly shady accounting practices and possible wrongdoing.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><span>Let&#8217;s<\/span><span> explore three factors to watch before considering a position in this embattled tech stock.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><em><strong>Start Your Mornings Smarter!<\/strong>\u00a0Wake up with <strong>Breakfast news<\/strong> in your inbox every market day.\u00a0<a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=bf73484d-0972-4a99-9b0f-370723ac8f49&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-foolcom-breakfast-news%3Faid%3D11010%26source%3Disaeditxt0000991%26ftm_cam%3Dsa-breakfast-news%26ftm_veh%3Dtop_incontent_pitch_feed_yahoo%26ftm_pit%3D16694&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=2f2681c4-9ab5-497c-bb9b-4de61b47fb57\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Sign Up For Free \u00bb;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><span><strong>Sign Up For Free \u00bb<\/strong><\/span><\/a><\/em><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><span>The first recent sign of trouble for Supermicro came in late August when short-seller Hindenburg Research &#8212; which would financially benefit from a fall in the stock&#8217;s price &#8212; released a report alleging the company engaged in accounting manipulation, self-dealing, and evading sanctions related to <\/span><span>Russia&#8217;s<\/span><span> invasion of Ukraine. Last week, some of these accusations gained strength when when Superm<\/span><span>icro&#8217;s<\/span><span> auditor, Ernst &amp; Young, resigned, saying, according to Supermicro that &#8220;<\/span>we are resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management&#8217;s and the Audit Committee\u2019s representations and to be unwilling to be associated with the financial statements prepared by management&#8230;&#8221;<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><span>To make matters worse, Supermicro is also reportedly being looked at by the Justice Department, which is said to be reaching out to the company&#8217;s former employees and others.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><span>These developments <\/span><span>won&#8217;t<\/span><span> necessarily affect Superm<\/span><span>icro&#8217;s<\/span><span> operations. However, they could tank its valuation by creating skepticism about the accuracy of its reporting and potential fines that could come up if management is found guilty of wrongdoing. Unfortunately, that might be the best-case scenario for this increasingly embattled company. <\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><span>Superm<\/span><span>icro&#8217;s<\/span><span> situation could get much worse. Public companies <\/span><span>are required to<\/span><span> have auditors and to file their financial statements by <\/span><span>certain<\/span><span> deadlines. The company has fallen out of compliance with both requirements, putting it at risk of delisting by te Nasdaq.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><span>After failing to file its annual 10-K annual report in August, management has until mid-November to submit a compliance plan, which (if approved) could push the deadline to February 2025. <\/span><span>However, Supermicro is still in a catch-22 because it <\/span><span>doesn&#8217;t<\/span><span> have an auditor, and the ongoing issues could make new firms hesitant to take on the role<\/span><span>.<\/span><!-- HTML_TAG_END --><\/p>\n<p><button class=\"secondary-btn fin-size-large readmore-button rounded   yf-15mk0m\" data-ylk=\"elm:readmore;itc:1;sec:content-canvas;slk:Story%20Continues\" aria-label=\"Story Continues\" title=\"Story Continues\"> <span>Story Continues<\/span> <\/button> <\/p>\n<div class=\"read-more-wrapper\" style=\"display: none\">\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><span>Wedbush analyst Matt Bryson highlighted the difficult situation in an interview with Bloomberg: <\/span><span>&#8220;I<\/span><span> think <\/span><span>that they<\/span><span> probably end up getting delisted just because of the timelines involved. How do they get their 10-K out in just a few months when they <\/span><span>don&#8217;t<\/span><span> have an auditor, and their last auditor resigned<\/span><span>?&#8221;<\/span><!-- HTML_TAG_END --><\/p>\n<figure class=\"yf-8xybrv\">\n<div class=\"image-container yf-24rror loader\" style=\"--max-height: 640px;\">\n<div class=\"image-wrapper yf-24rror\" style=\"--aspect-ratio: 960 \/ 640; --img-max-width: 960px;\"><img decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"Nervous person looking at a computer screen\" loading=\"lazy\" height=\"640\" width=\"960\" class=\"yf-24rror loader\"\/><\/div>\n<\/div><figcaption class=\"yf-8xybrv\"><!-- HTML_TAG_START -->Image source: Getty Images.<!-- HTML_TAG_END -->  <\/figcaption><\/figure>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><span>If Supermicro <\/span><span>is <a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/stocks\/delisted-stock\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=2f2681c4-9ab5-497c-bb9b-4de61b47fb57\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:delisted;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">delisted<\/a><\/span><span>, shares would probably move to <\/span><a class=\"link \" href=\"https:\/\/www.fool.com\/investing\/stock-market\/exchange\/otc-markets\/#:~:text=Over%2Dthe%2Dcounter%20markets%20are%20those%20where%20stocks%20that%20aren,for%20a%20variety%20of%20reasons.?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=2f2681c4-9ab5-497c-bb9b-4de61b47fb57\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:over-the-counter;elm:context_link;itc:0;sec:content-canvas\"><span>over-the-counter<\/span><\/a> <span>markets, which can be less liquid than traditional exchanges<\/span><span>. However, this <\/span><span>doesn&#8217;t<\/span><span> have to be permanent because companies can regain compliance and relist. For instance, the stock was delisted after failing to meet Nasdaq reporting deadlines in 2019 before rejoining the exchange in 2020.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><span>Most of Superm<\/span><span>icro&#8217;s<\/span><span> biggest near-term challenges could hurt its valuation, not its fundamentals, and earlier this week it released some encouraging, though preliminary, news. <\/span><span>On Nov. 5, it released an update from its &#8220;independent special committee&#8221; suggesting fiscal first-quarter (the quarter ended Sept. 30) net sales of <span class=\"ContentPaneDiv\"><span class=\"ContentPaneDiv1\">$5.9 billion to $6 billion<\/span><\/span>.<\/span><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><span>These figures are much lower than <\/span><span>management&#8217;s<\/span><span> previous guidance of $6 billion to $7 billion, but they represent 180% growth compared to the $2.12 billion reported in the prior-year period. With a <\/span><span>forward price-to-earnings ratio <\/span><span>of 7.65, Super Micro Computer&#8217;s stock is starting to look like a great deal, but<\/span> until there&#8217;s more clarity, it might not be worth considering this speculative play.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->Ever feel like you missed the boat in buying the most successful stocks? Then you\u2019ll want to hear this.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->On rare occasions, our expert team of analysts issues a <a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=73156712-8913-4b2f-a3da-eef355ea42a2&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fa-sa-dd-3%3Faid%3D9431%26source%3Disaeditxt0010984%26ftm_cam%3Dsa-dd%26ftm_veh%3Darticle_pitch_feed_yahoo%26ftm_pit%3D16623&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=2f2681c4-9ab5-497c-bb9b-4de61b47fb57\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:\u201cDouble Down\u201d stock;elm:context_link;itc:0;sec:content-canvas\" class=\"link \"><strong>\u201cDouble Down\u201d stock<\/strong><\/a> recommendation\u00a0for companies that they think are about to pop. If you\u2019re worried you\u2019ve already missed your chance to invest, now is the best time to buy before it\u2019s too late. And the numbers speak for themselves:<!-- HTML_TAG_END --><\/p>\n<ul class=\"yf-1woyvo2\">\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><strong>Amazon:<\/strong> if you invested $1,000 when we doubled down in 2010, <strong>you\u2019d have $23,657<\/strong>!*<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><strong>Apple:<\/strong> if you invested $1,000 when we doubled down in 2008, <strong>you\u2019d have $43,034<\/strong>!*<!-- HTML_TAG_END --><\/p>\n<\/li>\n<li class=\"yf-1woyvo2\">\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><strong>Netflix:<\/strong> if you invested $1,000 when we doubled down in 2004, <strong>you\u2019d have $429,567<\/strong>!*<!-- HTML_TAG_END --><\/p>\n<\/li>\n<\/ul>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START -->Right now, we\u2019re issuing \u201cDouble Down\u201d alerts for three incredible companies, and there may not be another chance like this anytime soon.<!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><strong><a href=\"https:\/\/api.fool.com\/infotron\/infotrack\/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=73156712-8913-4b2f-a3da-eef355ea42a2&amp;url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fa-sa-dd-3%3Faid%3D9431%26source%3Disaeditxt0010984%26ftm_cam%3Dsa-dd%26ftm_pit%3D16623%26ftm_veh%3Darticle_pitch_feed_yahoo&amp;utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=2f2681c4-9ab5-497c-bb9b-4de61b47fb57\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:See 3 \u201cDouble Down\u201d stocks \u00bb;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">See 3 \u201cDouble Down\u201d stocks \u00bb<\/a><\/strong><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><em><span>*Stock Advisor returns as of November 4, 2024<\/span><\/em><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><em><a href=\"https:\/\/www.fool.com\/author\/20237\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Will Ebiefung;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Will Ebiefung<\/a> has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:disclosure policy;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">disclosure policy<\/a>.<\/em><!-- HTML_TAG_END --><\/p>\n<p class=\"yf-1pe5jgt\"><!-- HTML_TAG_START --><a href=\"https:\/\/www.fool.com\/investing\/2024\/11\/08\/is-super-micro-stock-a-buy-3-things-to-watch\/?utm_source=yahoo-host-full&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=2f2681c4-9ab5-497c-bb9b-4de61b47fb57\" rel=\"nofollow noopener\" target=\"_blank\" data-ylk=\"slk:Is Super Micro Computer Stock a Buy? 3 Things to Watch.;elm:context_link;itc:0;sec:content-canvas\" class=\"link \">Is Super Micro Computer Stock a Buy? 3 Things to Watch.<\/a> was originally published by The Motley Fool<!-- HTML_TAG_END --><\/p>\n<\/div><\/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-buy-223500636.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With shares down by 78% from an all-time high reached in March, Super Micro Computer (NASDAQ: SMCI) might be one of the first dominoes to fall as the artificial intelligence &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=123875\" 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-123875","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/123875","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=123875"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/123875\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=123875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=123875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=123875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}