'Decimated' SMCI Faces Issues Beyond Accounting

Supermicro's (SMCI) independent auditor backed out of assisting the company with its finances. It's the latest in a series of accounting concerns surrounding Supermicro. According to George Tsilis, the product itself contributes to the stock's downfall.

======== Schwab Network ========
Empowering every investor and trader, every market day.



#economy #finance #investing #stockmarket #trading #supermicro #smci #nvidia #nvda #ai #artificialintelligence #technology #chips #accounting #liquidcooling #cpu #gpu

[davidl]

SMCI competes in a big enough market right now where demand is outpacing supply by a bit and the Dells and HPs aren't going to supply everyone. The question facing this stock isn't really are their revenues real, i think it's going to be what they are hiding in their margins and is their profitability real? Once you get past that hurdle, then it's what is the risk of them getting delisted, which happened before, and having no audit firm that is willing to touch you....that is a major hurdle. If on the next call they can concretely say another Big 4 is willing to tackle their accounting problems, then it will somewhat revive this stock. If they get delisted, this stock will tank much much more, not being in the S&P index means 40-50% of funds have to pull out and that's gonna be the end for alot of shareholders. Somewhat high reward but even higher as a shareholder, i hope they announce a complete overhaul of the board and CFO&CEO, that is the only way they might attract another big Audit firm to them.

[BE-kvdc]

Believe SMCI will overcome and resolve the current situation. This is a good buying opportunity 🚀🚀🔥🔥

[WiCapitalco]

Media brokers banks and, most importantly, analysts knew what they were doing.

[theMoney]

What about the Bloomberg report about spy chips in motherboards?

[torfriracookfera]

The rise in short interest from 9-10% to 177% indicates a significant bearish sentiment among investors. Are they reacting to genuine risk, or is this an overreaction?

[TrussttN]

Investors need to file a class action lawsuit against that company.

[robertcole]

So what was his target and opinion prior to EY issue? Is he a arm chair quarterback?

[Tbecker]

Comes down to competition getting pissed supermicro has all the h100’s and dell is pissed. This is a hit job

[Dizaotb]

Took a 3500$ L on this one. This company is losing a lot of people money with their bs.

[tylerwinkle]

I translated his blinking, it's actually Morse code. It says SELL MORTIMER SELL! TURN THOSE MACHINES BACK ON! TURN THOSE MACHINES BACK ON!!

[thetradersam]

will be back to $40 by end of December

[Mudflap]

Supermicro makes great machines, especially compared to HP and Dell. (I wouldn't touch another HP) Who was the accounting firm for Enron? Or the others mentioned? My personal experiences with E&Y showed me how bad they were (just for context)

[crispyduck]

With such a big opportunity in front of them they would have to be absolutely thick to fiddle the figures

[rodneybohannon]

Company has a bad history of cooking the books. I lost money and more money after shorting until last week. Now covering shorts on a daily basis making up the losses - patience friends. Fraud won't win.

[Noxirio]

30 blinks from 0:46 to 0:55 i stopped counting because i want to actually watch video but WTF MAN how can you even see the world ... i think he lives his life as when you just see photos one after another in rapid succession lets say if he keep this up he can blink 180 times per minute :D

[egyoac]

Dell and HP are not rivals of SMCI considering the liquid cooled racks. Either SMCI shall clear the accounting issues off or it will be acquired by a competitor! I am positive

[huunguyen]

Supermicro had history of accounting problem settle for close to 20 millions in 2000 so history repeat itself, will be lot low lawsuit as investors loss lot of money due to false advertisement, report

[徐培琰]

It is not the first time financial issu for supermicro

[BryanSmart]

Definitely a short squeeze after earnings

[ontopofmygame]

People are way to quick to buy! There's still uncertainty. Smci is pretty much a Chinese company even if on paper it seems its not. They are managing the business just like nio or baba. There's too much hype around AI, it makes people act foollish