Super Micro Computer (SMCI) shares took a significant hit on December 10, plummeting by 8.20% to $38.99, following fears of the upcoming NASDAQ-100 index reconstitution. The company’s stock price has seen a 316.14% rally in 2024, reaching an all-time high of $118.81 in mid-March, before receding to $54.76 in August and then experiencing a sharp drop after Hindenburg Research’s report on accounting malpractice.
However, SMCI has since recovered somewhat, with the stock price rising to $40.54 as of press time. The company has announced sweeping changes in leadership and found a new auditor, Ernst & Young (EY), following the resignation of its previous auditor. Additionally, Super Micro Computer has extended its deadline for filing delayed reports until February 25, 2025.
The recent rally has been attributed to investors buying into the dip, as well as the company’s positive news, including the naming of former vice president of finance Kenneth Cheung as chief accounting officer and announced plans to name new personnel to key positions. Despite this, concerns remain about SMCI’s potential replacement in the NASDAQ-100 index, which may be filled by high-flying stocks like Palantir (PLTR) or MicroStrategy (MSTR).
Source: https://finbold.com/heres-why-super-micro-smci-stock-price-is-crashing