Shares of Super Micro Computer (NASDAQ: SMCI)the once high-flying artificial intelligence (AI) server stock, was back on the move again today. After sinking for several weeks over concerns that began with a short-term trader attack and a delay in its 10-K filing, the stock has rallied sharply since Nov. 15 as the company hired a new auditor and submitted a settlement plan. according to Nasdaq stock exchange.
The stock is up 15.9% today, meaning it has more than doubled since November 15.
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There was no news related to the company on the market today, but the stock continued to move higher as investors indicated that they believe that the risk in the stock has decreased significantly since it filed for compliance and hired a new auditor.
Additionally, short-term momentum may be continuing to lift stocks as investors don’t want to miss out on a rebound.
The company still faces several hurdles to return to full health as it has yet to file its 10-K or give an indication of when it will be ready. Its 10-Q first-quarter earnings are also delayed, indicating that its accounting problems are piling up as it tries to correct discrepancies that have led to late filings and the resignation of its former auditor, Ernst & Young.
A rebound from last week’s start, when the company said it increased filings with Nasdaq and announced it had hired a new analyst, made sense, but the stock’s continued momentum appears to be strong.
There is still little clarity when the company will make its documents clear, and its special committee has not yet released its report on the steps to take to correct its financial statements, which the company expected to be completed by Nov. 15.
At this time, the stock still looks risky. It is not eligible for long-term ownership until it resolves outstanding accounting issues.
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