Super Micro stock plunges after company delays annual report following short-seller report

Published On Aug 28, 2024, 9:52 AM

Super Micro Computer's stock dropped 19% after the company announced it was delaying its annual report due to a need for further assessment of internal financial controls. This announcement follows a report from Hindenburg Research alleging accounting manipulation and various other financial irregularities, prompting concerns among investors. After previously soaring due to interest in AI technology, Super Micro's stock is now more than 60% down from its March peak, but still shows a 50% gain year-to-date. Analysts are cautious, downgrading the stock's rating amid reputational damage and uncertain financial practices.