David Paul Morris/Getty Images
What you need to know
- Super Micro Computer shares fell dramatically Monday morning, as two news reports from Friday continued to impact the company.
- Server maker’s shares are one of the three that will be removed from Nasdaq 100 Index next week. They have fallen 70% in value since March.
- Bloomberg has also reported Super Micro’s hiring of Evercore as a potential capital raising company.
Super Micro Computer shares dropped Monday, as the stock felt the impact of a couple of headlines released after the closing bell on Friday. These included a potential stock capital increase and its removal from Nasdaq 100 Index.
Nasdaq has announced that Palantir (PLTR), MicroStrategy(MSTR), Axon Enterprises (AXON), will be joining the Nasdaq Index next week. These companies replace Super Micro Computers, Modernas (MRNA), Illuminas (ILMN).
Super Micro has been replaced in the index, less than six month after its addition in July. Shares have fallen 70% in value since March’s record closing price of $118.81.
Bloomberg announced Friday, along with the removal of the index, that Super Micro hired investment banking advisor firm Evercore (EVR), to assist in the raising of capital by the server manufacturer. Bloomberg said that the raise may involve debt or equity, or could be in the form of a private-equity investment.
Hardware manufacturer raised capital in one of its two fundraising efforts this year. It announced, back in March, that they would be selling 2,000,000 new shares and aiming to raise $2 Billion.
Super Micro’s shares fell in the second part of the year, as earnings missed estimates. The company was also the target of a report by a short seller alleging that there were accounting issues and manipulation, plus the resignation of their last auditor. Super Micro has also delayed its filing of the annual report for last year’s fiscal period. Last week, the company received an extended deadline to file the document in order for it not to be removed from Nasdaq.
The shares of this tech company dropped more than 11% on pre-market Monday.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
