Super Micro Computer Has Soared Over 65% in the Last Month. Is It Too Late to Buy?

Super Micro Computer's (NASDAQ: SMCI) shares are up more than 65% over the last month, reversing a dramatic 85% wipeout of the company's market value over an eight-month period. Supermicro's stock price had crashed from an all-time high of $118.81 on March 13 this year, to $17.94 on Nov. 14. The market was concerned about the company's weaker-than-expected financial results and an unfavorable report from short-seller Hindenburg Research in August 2024, followed by management's announcement to delay filing the annual report. These worries further exacerbated after the U.S. Department of Justice (DOJ) announced an investigation into the company's accounting practices. Finally, investor sentiment worsened when Supermicro's auditor Ernst & Young resigned in October 2024, citing "integrity" concerns.  However, the recent favorable update from an independent special committee seems to have assuaged some of those concerns. On Nov. 18, the company appointed BDO USA, the fifth-largest accounting firm in the U.S., as its independent auditor. Supermicro is now focusing on filing pending financial reports for fiscal 2024 and the first quarter of fiscal 2025.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool