Super Micro Computer: This Stock Is Dead Money

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Kumquat Research
12.21K Followers
(6min)

Summary

  • Super Micro Computer shares have plummeted nearly 70% from 52-week highs.
  • Despite impressive YoY growth and favorable valuation metrics, negative investor sentiment looms large.
  • The DoJ investigation will likely keep the stock range bound for the foreseeable future.

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Super Micro Computer (NASDAQ:SMCI) has had an eventful few months, and not in the way investors might have hoped. After peaking close to $1230 per share in March, the stock has fallen nearly 70% on bad news after bad news. Fears over margin concerns

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Kumquat Research profile picture
12.21K Followers
To follow me click the "Follow" button! (Easy right?) Hi there, thanks for coming to my profile page! My name is Kumquat Research (but you can call me Jeremy) and I've been writing for Seeking Alpha on and off for going on ten years now, beginning with my inaugural published piece during my first year of college. I have a double degree in finance and computer science, have passed all three levels of the CFA exam, and currently work in fintech as a data engineer. Finding the time to write becomes more difficult by the day, but whenever I do I'm reminded why I became interested in the first place: the Seeking Alpha community is unparalleled in its diversity of opinion and its sophisticated, insightful userbase. In that vein, I encourage you to comment your thoughts on my articles or message me directly for anything at all. I truly enjoy reading each and every one! Articles written and comments posted by Kumquat Research are NOT financial or investment advice, and only express his opinion. Do your own due diligence!Jeremy

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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