Super Micro, Targeted by Short Selling, Delays Annual Report Submission... Stock Price Plummets 20%

Delay in Submission of Annual SEC Financial Report
Hindenburg Short Selling Report Appears to Be the Cause

Super Micro Computer, a beneficiary stock of artificial intelligence (AI), is experiencing a stock price plunge of over 20% following being targeted by short-sellers the previous day and delaying the submission of its annual financial report.

As of 2:36 PM Eastern Time on the 28th (local time), Super Micro Computer was trading on the New York Stock Exchange at $434.99 per share, down 20.57% from the previous day. Although the stock price has dropped to about half over the past three months, it still shows an increase of approximately 50% compared to the beginning of the year.

The sharp decline in the stock price on this day is due to Super Micro Computer delaying the submission of its annual financial report to the U.S. regulatory authority, the Securities and Exchange Commission (SEC).

The company explained regarding the submission of the annual financial report for the 2024 fiscal year ending in late June, stating that "considerable effort and cost will be required" and that "management needs additional time to complete the evaluation of the design and operating effectiveness of internal controls over financial reporting."

This delay in submitting the annual financial report appears to be related to the report released the previous day by the U.S. short-selling firm Hindenburg Research, which targeted Super Micro Computer for short-selling. Following Hindenburg Research's allegations of accounting manipulation by the company and the delayed submission of the annual financial report, investor anxiety has intensified.

Hindenburg Research wrote the previous day, "Our investigation of Super Micro Computer revealed accounting red flags, evidence of undisclosed related-party transactions, sanctions and export control failures, and customer issues." Previously, Super Micro Computer was fined $17.5 million by the SEC in 2020 for violating accounting and disclosure obligations and paid the penalty. However, the company did not improve its business practices afterward, and Hindenburg Research pointed out that it rehired a senior executive who had left the company due to these issues.

Hindenburg Research assessed, "Overall, Super Micro Computer is a repeat offender," adding, "While it has enjoyed profits as a leader, it still faces accounting, governance, and compliance issues and offers inferior products and services that could be eroded by more trustworthy competitors."

Meanwhile, Hindenburg Research is a prominent U.S. activist short-selling investor that shook the Indian conglomerate Adani Group last year. After Hindenburg Research released a negative report on the Adani Group last year, the group's market capitalization evaporated by more than $110 billion within two weeks.

This content was produced with the assistance of AI translation services.