Super Micro Computer says Ernst & Young resigns as auditor, shares tank

Reuters ^ | October 30, 2024 | Reporting by Zaheer Kachwala in Bengaluru; Editing by Shreya Biswas and Devika Syamnath

[SunkenCiv]

Super Micro Computer Inc
NASDAQ: SMCI
36.69 USD
−12.43 (25.31%)
Oct 30, 10:03 AM EDT

[SunkenCiv]

DJT is down a little today, but I still wish I'd listened to you. :^)

[blueunicorn6]

Those machines are stealing money to buy hookers and condos in Hawaii!

[montag813]

This company was always a ridiculous story. Unlike Nvidia, which has unique advantages in the AI space, super micro is just hosting which anybody can do and is doing

[Red Badger]

[Red Badger]

[TexasGator]

“This company was always a ridiculous story. Unlike Nvidia, which has unique advantages in the AI space, super micro is just hosting which anybody can do and is doing”

Wrong. They supply servers to others to host.

[montag813]

Meant to say that, but that’s what I get for using voice. However, Dell and umpteenth other companies do that same thing

[Red Badger]

[VideoDoctor]

You can bet that WHATEVER happens at Ernst & Young, it will be BLAMED on the AI COMPUTER NOT on any PERSON!

[Zhang Fei]

For this to happen to a large cap company is unusual and troubling. Arthur Andersen withdrew an audit opinion of WorldCom. The latter collapsed a year later. Before the auditor’s move, WorldCom’s market cap was $4b. This was a ~$30b market cap firm. Even with inflation, much bigger than WorldCom.

[SunkenCiv]

Cool, how do get to Hawaii? ;^)

[SunkenCiv]

Thanks all.

[catnipman]

here’s what hindenburg research found in august

https://hindenburgresearch.com/smci/

[tired&retired]

My hat is off to E&Y for resigning as auditor. They are a good firm.

I used to work for them, and was impressed with the firm’s integrity.

It’s a tough position to be in. I was in the Board Room of a client that was listed on the stock exchange when we delivered the message that we found fraud that took them from an annual profit to a loss.

The CEO freaked out and threw a big wooden conference room chair across the room and smashed it on the wall. Our finding cost him his job.

[Dr. Sivana]

super micro is just hosting which anybody can do and is doing

I like my SuperMicro-based computer just fine. I agree that they are not known for bringing anything new to the table, but their space, best I can tell is being the last one standing of the great non-gaming motherboard customized PC packagers. A lot of companies who make special purpose rigs don't want to be beholden to HPE, Lenovo or Dell, and Acer's line is not diverse and not as customizable, and Asus is really a gaming/home PC company. That leaves Super Micro. They are Taiwan, not Red China.

[SunkenCiv]

Wow! Those chairs are probably not cheap, either.

Of course, in his previous CEO job, the company’s stock symbol was HSSY, so... :^)

[SunkenCiv]

Heh, the name of that firm always makes me laugh!

[Eleutheria5]

For those inexperienced with trading: It always ebbs and flows like that. The ebb is called resistance, the flow support, and it comes in waves. When something is trending up, it flows more than it ebbs. When it’s trending down, the opposite. And you can make money either way, just by guessing right and acting on it.

[SunkenCiv]

Yes, the stock price of well-run companies tends to go up, but not on a straight line.

There are companies with good prospects, and early on, they may operate at a loss. Will DJT ever have earnings?

There are two questions about DJT -- is it well-run (mgmt turmoil could be just growing pains, or it may not be; I don't think it is) and, is it going to be attacked through lawfare (I think that's a given; not only DJT itself, but DJT himself, and maybe shareholders as well).