Shares of Super Micro Computer Inc (SMCI, Financial) have had a tough week, down 23%, adding to a pattern of wobbly prices barely a week after a dip in previous days. The company's stock soared as high as $119 in March, now fallen to $36.4 as investors vented their anger at the company's resignation of its auditor, Ernst & Young, citing concerns over the company's financial statements.
The company says an independent committee found no misconduct and that the resignation is unwarranted. However, Nasdaq has since granted Super Micro an extension until Feb. 25, 2025, to file delayed annual and quarterly reports, a move that will prevent the immediate delisting of its stock.
The stock, though currently struggling, is cheap, trading at 12 times forward earnings, well below its peers. Nevertheless, the stock has been hit by investor concerns over possible Nasdaq 100 removal and the nature of its financials. Despite that, the company's shares have this year outperformed the Nasdaq Composite index, which is up 32.6%, and gained 33.4%.
