Negative Guidance and Accounting Concerns at SMCI

3 days ago

Nor Molina

"Looking at shares of Super Micro Computer, that's taker SMCI. We're really seeing what was once a fan favorite here, reporting uh an unexpectedly issuing a first quarter guidance that fell short of the streets estimates here. Of course, you know, the stock is still up about 61% year to date. But this is among the worst performing stocks in the S&P 500 right now, down as much as 7.6% here as people really just parse this unexpected uh delivery here. And also, we do know that the company's really been working to recover from some of its accounting concerns since it missed an August 2024 deadline to file its annual financial report here."

The commentary notes that SMCI has reported disappointing Q1 guidance and is facing accounting issues, including a missed filing deadline, despite strong year-to-date gains. This mixed performance and recent negative news highlights considerable short-term risk.

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