Super Micro stock drops as Nasdaq deadline to avoid delisting approaches
Super Micro (SMCI) stock fell roughly 10% Tuesday afternoon as the company approached its deadline from the Nasdaq to submit delayed regulatory filings in order to avoid delisting.
Super Micro Computer makes server products using Nvidia's (NVDA) AI chips for data centers. The company delayed submitting its quarterly and annual filings to the US Securities and Exchange Commission after a report from short seller Hindenburg Research last August accused Super Micro of accounting manipulations.
The allegations sent Super Micro stock tumbling as the company faced an investigation from the Department of Justice, its accountant resigned, and its delayed SEC filings put the server maker at risk of being delisted by the Nasdaq.
The company missed its first Nasdaq deadline to submit its SEC filings and avoid delisting in late 2024 but was granted an extension through Feb. 25.
Super Micro has denied Hindenburg's accusations of accounting violations. The company has hired a new accountant and said in December that an independent review of its business found no evidence of misconduct.
With Tuesday's drop, Super Micro shares were down nearly 17% over the past five trading sessions.
That decline has partially reversed gains from the stock's weeks-long rally in February, in which shares fully recovered their losses from the fallout linked to the Hindenburg report. A top performer in the S&P 500 (^GSPC) just last week, Super Micro stock rose more than 16% Feb. 19 to just over $60, its highest closing price since Aug. 23, just a few days before the Hindenburg released its report. The stock was boosted by Super Micro's ambitious long-term financial targets.
Shares stood at roughly $46 Tuesday afternoon, far below Super Micro's high above $120 last March before the company was added to the S&P 500.
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10