Is Super Micro Computer Stock a Buy Now?
Following a terrific start to the year, Super Micro Computer's (NASDAQ: SMCI) stock chart has undergone a stark reversal over the past six months. It has lost close to 60% of its value from its peak, and recent developments seem to have further dented investor confidence in the company.
First, the fiscal 2024 fourth-quarter results it released on Aug. 6 weren't up to Wall Street's expectations, and management's guidance was disappointing. Second, short-seller Hindenburg Research released a report alleging accounting irregularities at Supermicro. Then, Supermicro management announced that it was delaying the filing of its annual report, which only added to the negative press.
Those factors explain why Wall Street analysts have been downgrading the stock lately. But given that shares of this server and storage systems manufacturer are now trading at an attractive 22 times trailing earnings and 13 times forward earnings, opportunistic investors may be tempted to buy Supermicro. Should they be doing that in light of the recent developments?
Source Fool.com
