What's Going On With Super Micro Computer Stock?
Portfolio Pulse from Erica Kollmann
Super Micro Computer, Inc. (NASDAQ:SMCI) shares dropped after announcing a $1.5 billion convertible senior notes offering due 2029, with an option for an additional $225 million. The notes have a conversion rate of 0.7455 shares per $1,000, at a price of $1,341.38 per share, a 37.5% premium over the recent closing price. SMCI's stock has surged recently, partly due to AI excitement and social media buzz. The company does not pay dividends but engages in other capital allocation strategies.
February 23, 2024 | 4:06 pm
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Super Micro Computer's stock fell following the announcement of a $1.5 billion convertible senior notes offering, indicating investor concern over dilution or the terms of the deal.
The drop in SMCI's stock price likely reflects investor concerns about dilution from the convertible notes and the premium pricing of the conversion rate. The recent surge in the stock due to AI excitement and social media buzz may also make investors cautious about valuation levels.
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