Why AI Server Maker Super Micro Computer's Stock Is Plummeting Over 12% In Premarket
Portfolio Pulse from Shanthi Rexaline
Super Micro Computer, Inc. (NASDAQ:SMCI) reported its fiscal fourth-quarter results, showing a significant year-over-year revenue increase but missing earnings estimates due to margin contraction. The company announced a 10-for-1 stock split and provided an optimistic sales outlook for the next fiscal year. Despite the positive sales guidance, the stock plummeted over 12% in premarket trading.
August 07, 2024 | 10:08 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Super Micro Computer, Inc. (NASDAQ:SMCI) reported strong revenue growth but missed earnings estimates due to margin contraction. The company announced a 10-for-1 stock split and provided an optimistic sales outlook for the next fiscal year. Despite the positive sales guidance, the stock fell over 12% in premarket trading.
The significant drop in premarket trading is primarily due to the earnings miss and margin contraction, which overshadowed the strong revenue growth and positive sales outlook. The announcement of a 10-for-1 stock split did not mitigate the negative sentiment.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100