Super Micro Shares Turn Negative for 2024 After Auditor Resignation

Oct 31, 2024 thejournalbiz

SuperMicro’s Shares fell 16% on Thursday, building on the previous session’s slump of about 33%.

The week’s selloff came after Ernst & Young LLP resigned as the company’s auditor, citing concerns about governance and transparency.

The one-time AI favorite more than quadrupled early this year

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Super Micro Computer shares turned negative for the year on Thursday, as concerns about the server maker’s finances weighed on the stock.#supermicro #ai #stocks pic.twitter.com/SEs6ZQXuGO

— The_Journalbiz (@the_journalbiz) October 31, 2024

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Argus downgraded the shares following the auditor’s news

The stock had previously risen more than 300% to hit a peak in March of this year, making it one of the most prominent winners of investments in infrastructure related to artificial intelligence. It has now lost all of that advance, tumbling by more than 75% since the March peak.

The auditor news is the latest red flag for the stock. Earlier this year, a short seller alleged accounting problems at Super Micro, and the company subsequently delayed a 10-K filing, saying it needed more time to assess its internal controls.