Shares of beleaguered Super Micro Computer (SMCI) are running 4% higher in pre-market trading Tuesday. After providing a business update on Friday, which caused the stock to jump more than 13%, SMCI stock is looking to rise for a fourth consecutive day as investors anticipate the data center computer filing its delayed financial reports.
Supermicro, as the company is known, is looking to regain the momentum lost following a short-sellers report that accused it of accounting manipulation, which launched probes by the Justice Dept. and the Securities & Exchange Commission. The Nasdaq exchange is also threatening to delist the stock if it doesn't file its financial statements by Feb. 25.
The data center stock was cleared of wrongdoing by an independent audit and its business update provided hope momentum would be returning.
Supermicro said it expected to report second-quarter revenue 54% higher than the year-ago period with adjusted profits 5% above last year.
That should be somewhat concerning to investors as it shows a lack of profitable growth as revenue is running away from earnings. However, the market seems to believe that once its financials are posted with the Nasdaq exchange, possibly as soon as this week, it will be able to put this ugly chapter behind it.
Supermicro has said it doesn't believe it will need to restate its previous filings, which could provide the spark needed if that turns out to be true.
SMCI stock had been the hottest commodity on the market in 2023 and had started off 2024 just as hot. Then the wheels came off. Shares are still down 61% from their all-time high, but have nearly tripled off their low point.
Investors, though, are looking to the future because data center demand remains white hot and Supermicro is a premier data center infrastructure company. When its financial paperwork finally hits, SMCI stock could take off once again.
