Securities Lawyers Blog
The attorneys at Gana Weinstein LLP are investigating claims that investors were recommended to invest substantial amounts of their savings in high risk stock Super Micro Computer, Inc. (SMCI). Investors whose advisors failed to act in their clients best interests may seek recovery before The Financial Industry Regulatory Authority (FINRA).
Super Micro Computer stock investors have been on the proverbial “wild ride” of the year. At the beginning of 2024 Super Micro Computer stock traded under $30 per share. By March of 2024 – in only 3 months – the stock was trading just shy of $120 per share and nearly a 300% gain during that time. Since March 2024 however, Super Micro Computer stock investors have watched the stock slide all the way down back to under $20 in November 2024 only to then begin to rebound.
What’s causing the wild moves? Super Micro Computer has been one of the big gainers in the artificial intelligence (AI) space and demand for its server systems has surged. Super Micro Computer’s revenues have more than doubled in 2024 and the consensus estimates see another additional 80% increase potentially. With that said, Super Micro Computer has been plagued by an accounting scandal and potential delisting from the stock exchange. Recently, Super Micro Computer hired BDO as its public auditor to replace the quitting Ernst & Young firm that resigned in October after it raised concerns regarding the company’s financial statements. With a new auditor, Super Micro Computer hopes to file two overdue financial reports including its 10-K report for the fiscal year ending June and its most recent quarterly filing for September. Super Micro Computer has also submitted a compliance plan to stay on the stock exchange. However, in August Hindenburg Research pointed to multiple red flags in the company’s accounting practices and The Wall Street Journal reported in late September that the U.S. Justice Department may be probing the company.