Super Micro Computer (SMCI) is the worst S&P 500 stock Thursday, extending Wednesday's decline, after the AI server, software and infrastructure firm announced it would delay the filing of its quarterly earnings.
In a filing with the Securities and Exchange Commission (SEC) issued November 12, SMCI said it is unable to file its financial results for its most recent quarter ended September 30 "without unreasonable effort or expense."
The company had previously notified the SEC that it was unable to file its annual report for its year ended June 30, adding to the problems facing SMCI.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Super Micro said it is "diligently working to select an independent registered public accounting firm" following the resignation of its previous accounting firm, Ernst & Young, on October 24.
In its resignation letter, Ernst & Young said it was "unwilling to be associated with the financial statements prepared by management," according to CNBC.
Will Super Micro get delisted?
The SEC requires publicly traded companies to file annual reports to maintain their listings on U.S. stock exchanges, which SMCI has yet to do for its year ended June 30, 2024.
SMCI has until November 16 to file or submit a plan to the Nasdaq Stock Exchange to regain compliance with its listing rules, according to Barron's. With that deadline just two days away and the company having yet to name an accounting firm, there is rising concern that SMCI will not regain compliance.
So, what will happen to the stock? "You still hold shares, the shares are still traded. They’re traded on the pink sheets [over-the-counter markets]," Wedbush analyst Matthew Bryson told Barron’s.
Here's what Wall Street's saying about Super Micro Computer
Given Super Micro Computer's struggles on and off the price charts – shares are down 77% in the past six months – Wall Street is on the sidelines when it comes to the tech stock.
Of the 12 analysts following the AI stock tracked by S&P Global Market Intelligence, one says it's a Strong Buy, two have it at Buy, seven call it a Hold, and two rate it Sell or Strong Sell. This works out to a consensus recommendation of Hold.
And amid SMCI's troubles, some analysts have washed their hands completely of the stock.
"Given the reputational and financial restatement risks raised by Ernst & Young's resignation as the company's certified public accountant, we have suspended our rating on shares of Super Micro," said Needham analyst Quinn Bolton in a November 6 note.
Related Content
-
Disney Stock Sails to the Top of the Dow After Earnings. Is It Time to Buy?Walt Disney stock is higher Thursday after the entertainment giant beat earnings expectations and issued a strong outlook. Here's what Wall Street is saying.
-
Why Wall Street Is Bullish on Cisco Stock After EarningsCisco stock is lower Thursday despite the tech giant's beat-and-raise quarter, but analysts aren't concerned. Here's what you need to know.
-
Disney Stock Sails to the Top of the Dow After Earnings. Is It Time to Buy?
Walt Disney stock is higher Thursday after the entertainment giant beat earnings expectations and issued a strong outlook. Here's what Wall Street is saying.
-
Cisco Stock: Why Wall Street Is Bullish After Earnings
Cisco stock is lower Thursday despite the tech giant's beat-and-raise quarter, but analysts aren't concerned. Here's what you need to know.
-
How One Caregiver Is Navigating a Loved One's DementiaShe's spent many hours doing research and speaking with other caregivers to find her way to resources designed to help caregivers.
-
Stock Market Today: Markets Waver as Inflation Continues to EaseStocks gave up early gains as waning consumer price inflation leaves rate-cut bets essentially unchanged.
-
October CPI Report Hits the Mark: What the Experts Are Saying About InflationCPI While the current pace of rising prices appears to have leveled off, the expected path of rate cuts has become less certain.
-
Nvidia Earnings: Updates and CommentaryNvidia earnings have become a key event on Wall Street which makes the AI bellwether's next report, due out after the November 20 close, must-see viewing for investors.
-
What's Behind Starbucks Stock's New Sell Rating?Starbucks stock has rallied hard since Brian Niccol was tapped as the coffee chain's new CEO, but one analyst thinks turnaround plans will be costly.
-
Cava Stock: Analysts Rush to Raise Price Targets After EarningsWedbush, for one, issued a Street-high price target for Cava stock after its beat-and-raise quarter. Here's what you need to know.
