Super Micro Removed from Nasdaq-100, Shares Plunge 15% Before Monday's Open

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) fell 15% in pre-market trading on Monday following the announcement that the company would be removed from the Nasdaq-100 Index. The changes to the index were announced to the public on Friday, and the update is set to take effect before the market opens on December 23, 2024.

As part of the annual restructuring of the Nasdaq-100 Index®, Palantir Technologies Inc., MicroStrategy Incorporated, and Axon Enterprise, Inc. will be added to the index. Meanwhile, Illumina, Inc., Super Micro Computer, Inc., and Moderna, Inc. will be removed.

In a related report, Bloomberg News revealed that Super Micro Computer Inc. has engaged Evercore Inc. to assist with its equity raise efforts. The server manufacturer is exploring equity and debt financing options to strengthen its financial position. This move comes during a challenging period for the company, which faces various issues, including the potential for delisting due to its failure to timely file its annual financial report. Super Micro has experienced a significant 69% drop in share value since its March peak, following issues with its former auditor Ernst & Young LLP and the initiation of a U.S. Department of Justice investigation based on allegations from Hindenburg Research.

Super Micro has yet to submit its financial report for the fiscal year ending June 30 and its quarterly report for the quarter ending September 30. Last week, the company announced that it received an extension from Nasdaq to file these documents by February 25. The firm appointed BDO as its new auditor following the resignation of Ernst & Young LLP due to concerns regarding governance and transparency at Super Micro.