SUPER MICRO COMPUTER INC (NASDAQ: SMCI) stock experienced a significant plummet of 5.66% in the intraday trading session on Friday, December 27th. The sharp decline followed concerns raised by a short seller report regarding the company's accounting practices and failure to file its annual report.
The controversy surrounding SMCI stems from a report published by Hindenburg Research, a renowned short seller firm. The report highlighted alleged accounting discrepancies within the company's financial statements, raising questions about the accuracy and transparency of SMCI's reporting practices.
Additionally, SMCI's inability to file its annual report on time has further fueled investor concerns. The company's failure to meet regulatory filing deadlines has cast doubts on its financial management and governance, contributing to the stock's sell-off.