Shares of Super Micro Computer Inc (SMCI, Financials) have had a rough week, down 23%, extending a weekly price pattern after dipping in previous days. The company’s income rose to $190 in March, and has now dropped to $36,400, as farmers expressed their anger at the resignation of the company’s auditor, Ernst & Young, expressing concern about the company’s finances.
The company says that an independent committee found no wrongdoing and that the resignation was not justified. However, Nasdaq has given Super Micro an extension until February 25, 2025, to file late annual and quarterly reports, a move that will prevent its immediate cancellation.
The stock, although currently struggling, is cheap, trading at 12 times forward earnings, well below its peers. However, the stock has been hit by investor concerns about the possible derailment of the Nasdaq 100 and its financial position. However, the company’s shares this year exceeded the Nasdaq Composite index, which rose 32.6%, and gained 33.4%.
This article first appeared on GuruFocus.