Super Micro Stock Falls Pre-Market As Delisting Fears Linger: Retail Stays At Sidelines
By Stocktwits Inc | First Published Dec 2, 2024, 6:09 PM ISTAccounting issues and delisting fears continue to weigh down on Super Micro stock, keeping retail mood subdued.
Shares of artificial intelligence (AI) server maker Super Micro Computer, Inc. ($SMCI) fell in Monday’s premarket session, potentially deepening the nearly 7% loss they witnessed in the truncated session last Friday.
In premarket trading, as of 7 a.m. ET, the stock was down 3.12% at $31.62. The stock has been on a volatile ride this year, moving in a range of $17.25-$122.90.
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Super Micro stock started the year strong, buoyed by optimism surrounding the AI revolution. Its inclusion in the S&P 500 in March further boosted market sentiment.
A 10-for-1 stock split, announced earlier, took effect on Oct. 1.
However, the stock has faced pressure since then, following Ernst & Young’s resignation as auditor and delays in filing its annual report for fiscal 2024 and the September quarter’s results.
From over $17 in mid-November, the stock staged a recovery as the company appointed a new auditor and submitted a compliance plan to the Nasdaq.
After climbing past $39 in late-November, the stock has retreated yet again, as delisting concerns remain an overhang.
On Stocktwits, retail sentiment toward the stock is ‘neutral’ (50/100), as the market awaits more clarity on the resolution of pending issues.
Messages shared on Stocktwits platform are mixed, with some suggesting the stock will bounce back from THE oversold levels.
A user said the downside potential is about 50% from current levels if the stock is delisted, but it presents 300% upside potential at the minimum, if the lingering risks mitigate.
The stock is up about 15% so far this year.
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