Super Micro stock slides lower, sets date for fiscal Q1 update

Accounting firm Ernst & Young resigned as Super Micro Computer's (SMCI) auditor. In a statement to Yahoo Finance, the software manufacturer noted that it currently believes the firm's findings won't "result in any of its quarterly financial results results" for the past fiscal year. SMCI is slated to give an update on its business on Tuesday, November 5, coinciding with the US Election Day.

Julie Hyman and Josh Lipton reports on the latest news on these headlines with Evercore ISI positing that Dell Technologies (DELL) will stand to gain from this.

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

This post was written by Luke Carberry Mogan.

Video Transcript

First up a look at Super Micro Computer, those shares are plummeting down 31%.

Right now.

The company taking a hit after Ernst and Young resigned as the company's auditor fueling concerns over the company's accounting practices.

Now Super Micro, it did come out with a statement to Yahoo Finance saying among other things, importantly, the company does not expect that a resolution of the matters raised by EY or those under consideration by the previous announced special committee of the board will result in any restatements of quarterly financial results for the fiscal year ended June 30th 2024 or other fiscal years.

The market doesn't care, right?

The market has a lot of questions about the credibility of the company right now and there's sort of a ripple effect in the market.

Josh, yes.

So who who gains from this pain?

Julie, who do we think two companies?

It seems like what the market thinks Dell H Pe, right.

Evercore does weigh in your point.

Exactly.

Tells clients, listen, you gotta take a look at Dell.

They say we think Dell is poised to gain share and remains a logical partner for customers who are looking for better slash different supply chain diversity.

They reiterated, they estimate that Dell's A I server revenues are on track to 8 billion plus in sales this year.

Yeah.

And Wedbush coming out today and saying the risk has increased, that Super Micro actually might be de delisted because of the delay in its filings by the way.

Um So Micro has now announced it's gonna give a business update.

It's gonna do a call.

You wanna guess when it's doing the call?

Since we're playing guessing games, let's do it election day because nobody's paying attention to.

That's exactly how you do it if you working for those.

Ey, but we read there.

So here's I thought ey statement we are resigning due to information that has recently come to our attention, which has led us to no longer be able to rely on managements and the audit committee's representation.

So tough words and, and no, no surprise the reaction you saw off that.