Super Micro Computer's ([SMCI]) shares fell sharply today after the company announced it would delay filing its annual report.
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Super Micro Computer's (SMCI) shares fell sharply today after the company announced it would delay filing its annual report. The delay was preceded by accusations of “accounting manipulation,” among other things. The news sent SMCI lower by roughly 30% during Wednesday’s trading session (Source: Yahoo). SMCI’s volatility this year has been extreme with shares starting the year around $285 before marking a high over $1200 in March, and shares are now trading around $400. From a technical standpoint, SMCI dropped below the acceptable 3 technical attribute threshold on July 24th and has lost 23.09% since then, not including today’s nearly 30% decline. Instead of using its default chart because of sizing issues, the 4% chart helps tell the story of SMCI’s rapid rise and current fall. The stock has almost returned to a consolidation area that formed during the second half of 2023 before a massive breakout, so there may be some support offered around $300. However, given the size of the fall, fundamental concerns, and technical deterioration SMCI is a stock to steer clear of for now.
