Super Micro Computer (SMCI) stock dropped as much as 11% on Wednesday, reversing some of Monday’s gains despite reassurances from CEO Charles Liang that the company won’t be delisted from Nasdaq.
Liang told investors at a conference on Tuesday that Super Micro is committed to transparency and compliance with regulators. The company has also submitted a compliance plan to Nasdaq, which helped spark a rally in late November.
However, concerns about accounting malpractices and export controls remain. An August report by Hindenburg Research accused the company of wrongdoing, leading to delays in filing annual reports with the SEC. Super Micro is currently being investigated by the Department of Justice and its accountant Ernst & Young resigned amid allegations of financial statement issues.
The Nasdaq granted an extension to Super Micro until February 25 to submit delayed reports, giving the company more time to avoid delisting. Despite this, shares still fell on Wednesday, closing down 5.5%. The stock is up 65% from last month, but its decline has been fueled by concerns about its financial health and regulatory issues.
Source: https://finance.yahoo.com/news/super-micro-stock-slides-despite-ceos-attempt-to-dispel-fears-of-nasdaq-delisting-162447704.html