Super Micro Computer CEO Charles Liang appears at the Computex conference in Taipei, Taiwan, on June 5, 2024.
Annabelle Chih Bloomberg | Getty Images
Super Micro Computer join the Nasdaq 100 in July. Five months later, it's out, and the stock is down 7% on the news.
Nasdaq said late Friday that Super Micro is being removed from the indexwhich is made up of the top 100 non-financial stocks on the Nasdaq and is the basis for the Invesco QQQ Trust exchange traded fund, one of the most actively traded ETFs.
The announcement is the latest in a roller coaster year for Super Micro, which hit a record high of $118.81 in March as demand soared for the company's processor-packed servers. artificial intelligence. The company's market cap has reached more than $70 billion, high enough to merit inclusion in the S&P 500.
Super Micro is now worth about $20 billion, about a quarter of the size of the median market cap of companies in the Nasdaq 100. Nasdaq will also remove Illuminate and Modern from the group, effective from 23 December.
The review will make room for the additions of Axon Enterprise and Palantir Technologiesas well MicroStrategya company whose value is linked to its billions of dollars of bitcoin shopping. Shares of MicroStrategy have gained nearly 600% so far this year and were up 4% on Monday.
For Super Micro, the story began to turn in August, when the company said it with a file its annual report to the SEC on time. Noted short seller Hindenburg Research then disclosed a short position in the company, saying in a report that it identified "fresh evidence of accounting manipulation."
In October, Ernst & Young resigned as Super Micro's auditor, resulting in a 33% stock plunge. A special independent board committee evaluated the concerns from Ernst & Young and he found no misconduct after a three month investigation. The report recommended that the company replace its CFO. The company said in November that BDO was its new auditor.
Super Micro was at risk of being delisted from Nasdaq for a second time due to its delayed financial reports, but two weeks ago received an extension until February 2025.
In a preliminary earnings report, the company said revenue for the third quarter was up 181% year over year, under consent.
"The competition is strong, but I believe we are in a good position," CEO Charlies Liang said on a November conference call with analysts. Rivals include Dell and HPE.
