Supermicro Computer’s share price declined 8.3% at market close, despite a positive performance of the S&P 500 and Nasdaq Composite indexes. The server specialist is exploring new funding options through stock sales or debt, which may impact existing shareholders.
According to Bloomberg, Supermicro has hired Evercore to aid in raising capital. The company may approach private equity firms and consider taking on new lines of credit to raise funds. This move could lead to a dilution of shareholder value as more shares are sold.
Supermicro’s removal from the Nasdaq-100 index adds to the downward pressure. As part of this index, the stock was included in exchange-traded funds tracking the Nasdaq and other indexes. However, its exclusion means that existing shares will be sold off, further lowering the stock price.
While a long-term decline is uncertain, Supermicro’s recent challenges remain unaddressed. The replacement of the company with Palantir Technologies in the Nasdaq-100 index highlights ongoing issues facing the server specialist.
Source: https://finance.yahoo.com/news/why-super-micro-computer-stock-001129968.html