With a big jump, Super Micro Computer Inc.’s stock is once again beating the S&P 500 index. This shows that investors are becoming more confident in the company’s ability to meet its filing obligations.
The company that makes servers said on Monday that it had hired a new auditor, BDO USA, and sent the Nasdaq a plan for how it would catch up on its late reports.
In a note to clients, Mizuho analyst Vijay Rakesh said, “We believe Nasdaq approval is on deck, potentially in 2–5 weeks.” He said that BDO USA is thought to be the fifth-biggest accounting company by revenue, after the “Big Four.”
Ernst & Young quit as Super Micro SMCI 28.88%’s auditor last month, saying it couldn’t be linked to financial statements made by management. This meant the company needed a new accountant. The company that makes servers could be delisted again if the Nasdaq doesn’t agree with its plan. However, Super Micro will stay listed while the exchange considers its proposal, and Rakesh thinks that the business and its new auditor will be given until February to file.
On Monday, shares of Super Micro went up 16%, and now they’re up 26% on Tuesday.
But the stock is still down about 40% in the last month, and it’s slightly down for the year, even though it had a big rise earlier in 2024 thanks to AI.
There are still a lot of things that Super Micro doesn’t know, like whether or not the Nasdaq will accept its proposal, whether the new auditor will be able to file the late reports correctly, whether the company will have to answer to regulators for poor accounting, and whether the whole thing makes customers think twice about where they do business.
Ernst & Young had some initial accounting concerns. According to Super Micro, a special committee looked into them and found that the company’s audit committee had “acted independently and that there is no evidence of fraud or misconduct on the part of management or the board of directors.”
