Revenue Miss, Auditor Gone, Delisting Looms: Is Super Micro’s Collapse Imminent (Spoiler: Yes)

If you had “Super Micro implodes” on your 2024 bingo card, congratulations — you’ve won. The embattled AI server maker just dropped another bomb on its already shell-shocked investors. After months of scandals, missed deadlines, and a stock price that’s been in a freefall since March, Super Micro decided to cap things off with a thoroughly uninspiring earnings call. Spoiler alert: it didn’t go well.

(Source: Giphy) 

Let’s start with the good news, if you can call it that: Super Micro reported preliminary revenue for the quarter ending September 30th of $5.9 to $6 billion. That might sound like a lot until you realize analysts were expecting $6.45 billion. Adjusted net income came in at $0.75 to $0.76 per share, which, again, might sound okay until you remember these numbers are unaudited LOL. So, yeah, there’s a chance they’re even worse.

(Source: CNBC) 

Speaking of an unaudited sh*t show, Super Micro is still trying to pick up the pieces after its auditor, Ernst & Young (EY), noped out last month. And why did EY bolt? Well simple, they didn’t want to be associated with Super Micro’s gut-wrenching financials. 

What’s more, is that if Super Micro doesn’t file its delayed annual report with the SEC by mid-November, it could get delisted from Nasdaq. Aaaand, that’s what we call a complete market exile. 

(Source: NBC) 

Naturally, investors tuned into the earnings call hoping for some clarity, but instead got a masterclass in evasion. Not a single question about EY’s resignation was answered. CEO Charles Liang did throw out some vague, feel-good statements like, “We are working with urgency to become current again with our financial reporting…” including pivoting on Nvidia’s latest Blackwell GPU’s as if Nvidia is going to fix everything. 

Which isn’t technically flawed, especially since demand is strong and yes, Super Micro is ready to ship servers packed with Nvidia’s AI chips - but overall, the overall vibes of Super Micro’s financial stance was clearly screaming one of my favorite memes of all time: 

(Source: Giphy) 

This of course just added the flames to the fire of Super Micros fall from grace as shares have cratered by 80% since its March highs - with shares taking another 15% plummet in after-hours trading (-21.72% at the time of this writing). Meaning as it turns out, “trust us, we’ve got a relationship with Nvidia” isn’t enough to soothe a market that’s terrified of delisting, unaudited financials, and a potential accounting scandal. 

(Source: Giphy) 

So in the end, where does that leave us? Well, with  a company that’s at risk of being delisted, facing accusations of accounting red flags, and offering weak guidance for the future. Investors are running out of reasons to believe in Super Micro, and at this point, the only thing growing faster than their skepticism is the company’s pile of problems. But hey, at least Trump single handedly ignited a 3.14%, 2.38%, and 2.05% rally in all three indices today, amirite? 

(Source: Giphy) 

In the meantime, short Super Micro, long Super Micro - the choice is yours. Some will see a “BTFD” opportunity, and others will write it off completely. Of course, only time will tell what happens in the future - but as for me? Super Micro is Super Sh*t for the time being.

As always, stay safe and stay frosty, friends! Until next time…

P.S. The Trump frenzy is in full swing, and with the Dow leading the charge up 1,300+ points this morning - our systems have just caught a massive stock that is primed to EXPLODE very, very soon. Click here now to be in the know before we drop the ticker…

Stocks.News does not hold positions in companies mentioned in the article.