Super Micro Analyst Suspends Rating Over Governance, Accounting Issues

Anusuya Lahiri

November 02, 2024

Super Micro Computer, Inc (NASDAQ:SMCI) stock continued to fall on Thursday after Rosenblatt analyst Hans Mosesmann suspended his rating on the artificial intelligence server company, citing governance and accounting concerns following Ernst & Young’s resignation as the company’s auditor.

Mosesmann noted that Ernst & Young resigned as the company’s registered public accounting firm on Oct. 24, due to concerns regarding governance, transparency, and completeness of communications from Super Micro to Ernst & Young and matters regarding internal control of financial reporting.

Also Read: Comcast Q3 Earnings: Olympics Power NBCUniversal Gains, Peacock Hits 36M Subscribers, Explores Forming New Company Of Cable Networks

Super Micro is in the process of finding a new accounting firm and does not expect to restate any quarterly financials for fiscal 2024 or previous fiscal years.

In early September, Super Micro’s management postponed its 10K filing, stating they did not anticipate any material adjustments to the fiscal quarter or fiscal year ending in June, a stance reiterated in their 8-K filing, the analyst noted Additionally, Super Micro appointed a Special Committee to review its internal controls.

Management disagreed with Ernst & Young’s decision to resign before the review’s completion, suggesting the departure may align with staff reductions amid declining demand, potentially signaling a shift away from higher-risk projects.

Mosesmann anticipates further management updates during the first-quarter fiscal 2025 earnings call scheduled for Nov. 5. Given current uncertainties around Super Micro’s financials, the analyst suspended his rating, price target, and estimates until a clear outcome allows for a definitive recommendation.

Also on Thursday, Argus Research analyst Jim Kelleher also downgraded Super Micro from Buy to Hold.

In August, Hindenburg published a short report accusing Super Micro of accounting manipulation, self-dealing with related parties, and evading sanctions.

The report draws on findings from litigation records, company documents, and interviews with former senior employees.

Price Action: SMCI stock is down 10.5% at $29.58 at last check Thursday.

Also Read:

Roblox Q3 Earnings: Bookings Jump 34%, User Base Hits 89 Million, Raises Annual Outlook

Photo: Shutterstock

Recommended

Can You Still Trust This Bull Market? - Ad

"Tech Prophet" Who Predicted the iPhone Now Predicts... - Ad

Is This Elon's Worst Nightmare? - Ad

NEW YORK (AP) — President Donald Trump denounced ABC News' Mary Bruce as a “terrible reporter” Tuesday and threatened the network's license to broadcast after she asked him three sharp questions at the White House.

Marjorie Taylor Greene Buys Blue Chip Stock Near 52-Week Low

Marjorie Taylor Greene is known for buying multiple stocks at a time, based on recent disclosures. A new filing shows one stock bought in November.

How it's Possible to Rake In Huge Gains From Gold's Surge

How it's Possible to Rake In Huge Gains From Gold's Surge - Ad

Gold blasted past $4,300 recently. It's up almost 50% in the past year. But why settle for 50% like most coin buyers... when past gold cycles have thrown off gains of 2,300%, 7,746%, even 9,850%? Weiss Ratings' gold expert Sean Broderick reveals what he believes is a more profitable way to play this surge.

MacKenzie Scott Has Donated More Than $19 Billion, Yet Her Wealth Grows Faster

MacKenzie Scott, the billionaire philanthropist and ex-wife of Amazon founder Jeff Bezos, has donated a staggering $19.25 billion since 2020.

'Rich Dad Poor Dad' Author Robert Kiyosaki Warns Of Crash In BTC, ETH, Gold, Silves Prices, But Says He's Buying, Not Selling: Here's Why

Robert Kiyosaki, author of “Rich Dad Poor Dad,” has shared his investment strategy amid predictions of an economic downturn.

America's Defense Future Starts Underground

America's Defense Future Starts Underground - Ad

A N. American metals project just caught the attention of Rio Tinto - a mining giant. With four projects in key regions, this firm is aligned with Washington's push to rebuild the defense-metal supply chain.

France threatens to block Shein over sale of childlike sex dolls ahead of Paris store opening

PARIS (AP) — French authorities have warned they may block access to after it emerged that the online fast fashion giant had been selling sex dolls with a childlike appearance.

Bill Gates' Daughter Phoebe's AI Shopping Assistant Found Collecting Extensive User Data: Report

Phia, co-founded by Phoebe Gates, has been found collecting extensive user data through its browser extension, raising privacy concerns.

Investing Legend Hints the End May Be Near for These 3 Iconic Stocks

Investing Legend Hints the End May Be Near for These 3 Iconic Stocks - Ad

Futurist Eric Fry say Amazon, Tesla and Nvidia are all on the verge of major disruption. To help protect anyone with money invested in them, he's sharing three exciting stocks to replace them with. He gives away the names and tickers completely free in his brand-new "Sell This, Buy That" broadcast.

Pete Hegseth Says War Department Preparing For 'Action' In Nigeria

U.S. Defense Secretary Hegseth agrees with Trump's order to prepare for action in Nigeria to stop the killing of Christians by Islamist militants.

Warren Buffett Opens Up About The Biggest Investing Blunders Of His Career — Here They Are

Over the decades, the "Oracle of Omaha" has shared candid reflections on his biggest blunders, from emotional decisions to missed opportunities, all of which provide timeless investing insights.

Jensen Huang's Secret Masterplan Revealed

Jensen Huang's Secret Masterplan Revealed - Ad

NVIDIA's revolutionary new invention just solved the #1 chokepoint that's been strangling big AI companies. And Tech legend Jeff Brown - the Silicon Valley insider who called NVIDIA before it skyrocketed more than 30,000%... says a shocking announcement by NVIDIA CEO Jensen Huang could make a lot of early investors rich.

Rivian Automotive CEO Gets An Elon Musk-Style Pay Raise

Rivian CEO's new pay plan could be worth up to $4.6 billion over the next ten years.

Zohran Mamdani Was Crypto Bettors' Overwhelming Favorite For New York City Mayor At 100% Odds — And He Just Won

Zohran Mamdani won the high-stakes New York City mayoral race Tuesday, a victory widely anticipated by cryptocurrency bettors, who had overwhelmingly backed the Democratic Socialist.

Elon's New Device Could Launch Biggest IPO of the Decade

Elon's New Device Could Launch Biggest IPO of the Decade - Ad

Elon Musk's new device is being called a "game-changer"-and even the White House is using this tech. Jeff Brown says it could launch Musk's next trillion-dollar company and make early investors rich. You can claim a stake now for as little as $500.

Cathie Wood Goes All-In On Peter Thiel's Crypto Play Bullish With Back-To-Back Million-Dollar Buys

Cathie Wood-led Ark Invest purchased shares in Bullish, a crypto exchange backed by Peter Thiel, through three of its funds. Other key trades were also made, including buying shares in CRISPR and Beam Therapeutics.

Belgian farmer sues French energy giant for damage caused by climate change

TOURNAI, Belgium (AP) — A Belgian farmer is facing off against oil giant TotalEnergies in court on Wednesday, arguing the French company should pay for damage caused by in the latest lawsuit by environmental activists against big energy companies.

Trump Signs Law to Launch Dollar 2.0

Trump Signs Law to Launch Dollar 2.0 - Ad

Trump just signed law S.1582, unleashing the biggest money shift in 100+ years. For the first time since 1913, private firms - not the Fed - can mint a "Dollar 2.0." Treasury says it could drain $6.6T from banks and pay 10X current savings rates. Early investors in minting firms could see 40X returns by 2032.

Elon Musk Hints SpaceX Could Go Public Despite Downsides: 'I Do Want Supporters To…'

Elon Musk hints at possibility of SpaceX going public in the future, allowing Tesla shareholders to invest.

Taylor Swift, Elon Musk, Donald Trump, MrBeast — Robinhood Just Made Their Mojo Tradable

Robinhood has new prediction markets for its customers, with a focus on the entertainment sector. Here are some of the new markets.

Metals... Not Missles... Is the New Arms Race

Metals... Not Missles... Is the New Arms Race - Ad

China and Russia control 70% of the world's critical minerals, giving them leverage over the West. One N. American discovery could help shift that balance by developing the metals essential for defense systems.

What to know about 10% reduction in flights at U.S. airports caused by the government shutdown

NEW YORK (AP) — are among those facing 10% reductions in air traffic Friday due to the .

'No hire' job market leaves unemployed in limbo as threats to economy multiply

WASHINGTON (AP) — When Carly Kaprive left a job in Kansas City and moved to Chicago a year ago, she figured it would take three to six months to find a new position. After all, the 32-year old project manager had never been unemployed for longer than three months.

Can You Still Trust This Bull Market?

Can You Still Trust This Bull Market? - Ad

Is this bubble set to pop? Headlines say yes, but one market vet with a 15-year track record says not yet. A historic pattern is taking shape that could send $7.4 trillion pouring into select stocks, triggering a Melt Up that could run for years to come. You don't want to miss it.

Trump has other tariff options if the Supreme Court strikes down his worldwide import taxes

WASHINGTON (AP) — President Donald Trump has warned that the United States will be rendered “defenseless’’ and possibly “reduced to almost Third World status’’ if Supreme Court strikes down the tariffs he imposed this year on nearly every country on earth.

Sunrun Stock Drops After Mixed Q3 Earnings Report

Sunrun shares were down after the company released a mixed third-quarter earnings report after Thursday's closing bell.

"Tech Prophet" Who Predicted the iPhone Now Predicts...

"Tech Prophet" Who Predicted the iPhone Now Predicts... - Ad

George Gilder - who predicted the iPhone 17 years early and gave Reagan the first microchip - is making his boldest call yet. He says an American nanotech "super-convergence" could mint more millionaires than any event in recent memory. He's found 3 stocks set to benefit the most.

Why Is Phio Pharmaceuticals Stock Soaring Today?

Shares of Phio Pharmaceuticals Corp. (NASDAQ: PHIO) are rising Monday after the company provided an update on an ongoing medical trial.

The shutdown has disrupted air travel. Will that drive a surge in car rentals and train bookings?

NEW YORK (AP) — The U.S. has rattled air travel — most recently with an unprecedented effort from the Federal Aviation Administration at airports nationwide. And the disruptions are causing some to instead hit the road or buy a train ticket.

Is This Elon's Worst Nightmare?

Is This Elon's Worst Nightmare? - Ad

Elon's empire looks doomed - crashing sales, lost tax credits, and media backlash. But behind the scenes, Tesla is about to unleash a breakthrough Forbes calls a "multi-trillion-dollar opportunity." It's not the end - it's the start of a 25,000% AI comeback.

Trump may become the face of economic discontent, a year after such worries helped him win big

WASHINGTON (AP) — President got a serious that he’s out of touch with their fears about a deteriorating U.S. economy.

TSLA, PLTR, IREN And More: 5 Stocks That Dominated Investor Buzz This Week

Retail investors talked up five hot stocks this week (Nov. 3–7) on X and Reddit's r/WallStreetBets: TSLA, PLTR, MSTR, AMD, IREN.

How it's Possible to Rake In Huge Gains From Gold's Surge

How it's Possible to Rake In Huge Gains From Gold's Surge - Ad

Ferrari CEO Confirms Electric Car Plans, Raises Full-Year Outlook

Ferrari N.V. stock rose after reporting Q3 results and guidance. Sales grew 7.4% and EPS beat estimates. Net revenues and adjusted EPS outlook raised.

Trump administration moves to loosen restrictions it once supported on a harmful pollutant

WASHINGTON (AP) — Near the end of his first term, President Donald Trump signed into law a bill that and air conditioners. The bipartisan measure brought environmentalists and major business groups into rare alignment on the contentious issue of climate change and won praise across the political spectrum.

America's Defense Future Starts Underground

America's Defense Future Starts Underground - Ad

Trump's Tariffs Face Doubts In Supreme Court: 'Major Questions Doctrine' Looms Large Amid Debate Over President's Emergency Powers

The U.S. Supreme Court raised doubts regarding President Donald Trump's authority to impose sweeping tariffs using a decades-old emergency powers law.

Donald Trump's Popularity Falls As Shutdown Drags On

President Donald Trump's approval rating has continued to drop, with the latest poll showing a significant decline, raising concerns for the Republican Party as the 2026 midterm elections approach.

Investing Legend Hints the End May Be Near for These 3 Iconic Stocks

Investing Legend Hints the End May Be Near for These 3 Iconic Stocks - Ad

Trump Touts 'Really Good Deal' With China As US Stock Futures Rally — Dow Up 91 Points While Gold, US Dollar Remain Flat

U.S. stock futures are surging on Sunday evening, following greater clarity and easing trade tensions between the United States and China over the weekend, following the summit between President Donald Trump and Chinese President Xi Jinping in South Korea last week.

Trending Now