Name of opportunity: 👀
Super Micro Computer, Inc
Down by almost a quarter:👇
Today, Super Micro stock fell by 24.97%, after the company announced that it would be delaying its annual report. For a company to file its report late is a bad sign, and it often leads to a drop in price as investors’ confidence is shaken.
However, on this occasion there’s a little more to it than that. Yesterday, Hindenburg Research said that after investigating Super Micro Computer for 3 months, that the company showed signs of “accounting manipulation”. The report also said that Super Micro had hired back many of the top executives who were let go in 2018 after the company was penalised and removed from the NASDAQ for not filing financial statements. Hindenburg Research is a firm that conducts investigations into companies’ business practices and accounting - it is a short seller that profits if the share prices of the companies it targets go down.
How hot is this investment opportunity? 🔥🔥
Super Micro Computer is technically still a ‘Buy’ according to analysts. While the accusations are concerning, the company is in ‘Above Average’ financial health according to analysts based on the Super Micro's previous reports - but what will the delayed annual report reveal?
Investors might want to either wait and see what comes out in Super Micro Computer’s annual report when they release it - it could be that Hindenburg Research were right to call the company out for its accounting - but this could also be a chance to grab this stock at a lower price than usual.
Right now, analysts predict that the price of Super Micro Computer, Inc. will increase from $403.00 to $1,022.92 in the next 12 months. If you invested $1000, you might profit $1470.81. Of course, analysts at some firms may be changing their minds based on the events today.
Tech company: 🖥️
We previously covered Super Micro on Hot Stocks earlier this month, commenting on the volatility of this stock. Super Micro Computer, Inc. is a global technology company. The company provides Silicon Valley-based accelerated compute platforms that are application-optimized server and storage systems for various markets, including enterprise data centers, cloud computing, artificial intelligence, fifth generation (5G) and edge computing.
Which neme?: 🔍
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