Why Super Micro Computer Fell Over 36% in June
Super Micro Computer diluted shareholders in order to fund a massive order book, and investors weren't fans of the move.
Overview
Shares of AI server leader Super Micro Computer (NASDAQ: SMCI) plunged 36.4% in January, according to data from S&P Global Market Intelligence.
Super Micro had rallied heading into the month, but the stock experienced another sharp pullback after selling common stock and convertible notes. Despite the share sales being necessary only for large orders, investor trust in Super Micro is rather low right now, and the market appears to have priced in the dilution effects of the securities sales without much, or any, of the benefits.
Details
In addition to the early month dilution announcements, more Super Micro employees were arrested in Taiwan as part of the country's efforts to clamp down on illegal smuggling of AI servers to China.
Source
Originally published at www.fool.com.