Super Micro Computer, a leading server manufacturer, has been removed from the prestigious Nasdaq 100 index after just five months of membership. The company’s stock plummeted by 8% on Monday, leaving it over 70% below its March high. This move is part of a broader shake-up in the index, which will also remove Illumina and Moderna as of December 23.
The decision comes at a tumultuous time for Super Micro, whose shares soared to a record $118.81 in March due to strong demand for its AI-powered servers. However, the company’s market value has plummeted to around $20 billion, roughly one-quarter of the median market cap of Nasdaq 100 companies.
To make room for new additions, Axon Enterprise and Palantir Technologies will be joining the index, alongside MicroStrategy, a bitcoin-focused firm whose shares have skyrocketed by over 500% this year. The changes are expected to take effect on December 23.
Super Micro’s struggles began in August when it missed its annual filing deadline, prompting concerns about accounting manipulation from short seller Hindenburg Research. This led to Ernst & Young’s resignation as auditor, resulting in a 33% stock plunge. An independent committee later cleared the company of wrongdoing, but not before CEO Charles Liang recommended replacing the CFO.
Despite these challenges, Liang remains optimistic, stating that competition is strong but “I believe we are in good position.” The company has received an extension to keep its Nasdaq listing until February 2025, but the future remains uncertain for Super Micro.
Source: https://www.cnbc.com/2024/12/16/super-micro-slides-7percent-after-stock-is-dropped-from-nasdaq-100.html