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Luke Kawa8/5/25

Super Micro craters after earnings and revenues miss

Super Micro Computer is down double digits after posting fiscal fourth-quarter results that missed on the top and bottom lines.

For the three months ending June 30, the AI server company reported:

Adjusted diluted earnings per share of $0.41 (estimated $0.44, guidance for $0.40 to $0.50).
Net sales of $5.76 billion (estimated $6 billion, guidance for $5.6 billion to $6.4 billion).

Super Micro had been warning that it would take time for Nvidia’s Blackwell ramp to pay dividends for the company, and it looks like the payoff will have to wait a little longer.

Management said first-quarter net sales would come in between $6 billion and $7 billion, which fits neatly with the Street’s view, but that adjusted earnings per share would range from $0.40 to $0.52, well below the $0.59 consensus estimate.

And so begins a massive fiscal year for Super Micro, as CEO Charles Liang had previously outlined a massive $40 billion revenue target for the 12 months ending June 2026, which is now lowered to at least $33 billion. That’s still higher than the $30 billion analysts had anticipated.

Prior to Friday’s sell-off, Super Micro had been at its 2025 highs in what’s been a tumultuous year so far. The stock doubled in February as management filed the necessary paperwork to stay listed on the Nasdaq on the heels of its accounting issues last year.

The stock’s price was then cut in half during the ensuing rout in momentum stocks and tariff-driven angst that brought the S&P 500 to the verge of a bear market in April.

Shares rebounded as President Donald Trump watered down and paused tariffs, with Super Micro’s $20 billion deal with a Saudi Arabian data center firm and a renewed AI boom powering the stock higher once again.

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While November is historically the best month for US stocks, the first week of the month in 2025 wasn’t great.

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The insanity over the Starbucks “Bearista” cups tells you everything you need to know about the US economy and markets

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Retail traders are “skipping the dip” this time

Here’s one noteworthy feature of the recent market downturn that has the S&P 500 poised for its worst week since reciprocal tariffs were announced in early April: retail traders seemingly aren’t eager to buy the weakness in single stocks the way they used to be.

JPMorgan strategist Arun Jain has flagged that retail traders instead appear to be “skipping the dip.”

“In contrast to the behavior observed during the post-Liberation Day selloff, retail investors did not seize the opportunity to buy-the-dip on Tuesday, with a few exceptions such as META,” he wrote of the day where the benchmark US stock index fell 1.2%. “In fact, they scaled back their ETF purchases and turned net sellers in single stocks.”

Then on Thursday, when the S&P 500 fell 1.1%, Jain projected that retail traders sold $261 million in single stocks. Through noon ET on Friday, his daily outflow estimate stands at $851 million.

With that intel, it’s little wonder why the carnage this week has been particularly intense in more speculative single stocks that had been favored by the retail community, including IREN, IonQ, Rigetti, Cipher Mining, Bloom Energy, and Oklo.

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Archer Aviation plunges on $650 million share sale following its third-quarter results

Air taxi maker Archer Aviation is deep in the red on Friday morning after reporting its third-quarter results after the bell Thursday. The stock is down more than 12%.

Investors don’t appear to be thrilled about the company’s $650 million direct stock offering, announced alongside its results.

The move marks at least the third major equity raise, and dilution, for Archer this year. The company raised $300 million from a new stock sale in February, and sold $850 million worth of shares in June.

On Archer’s earnings call Thursday, interim CFO Priya Gupta said the company came to the decision after “substantial inbound interest.” According to Gupta, the company has heard from government and commercial partners that liquidity is a “key driver to their decisions of who to partner with.” With its latest share sale, Archer said its total liquidity is more than $2 billion.

Archer Aviation sinks after reporting better-than-expected Q3 loss, announces it will acquire LA’s Hawthorne Airport

Archer Aviation sinks after reporting better-than-expected Q3 loss, announces it will acquire LA’s Hawthorne Airport

The move marks at least the third major equity raise, and dilution, for Archer this year. The company raised $300 million from a new stock sale in February, and sold $850 million worth of shares in June.

On Archer’s earnings call Thursday, interim CFO Priya Gupta said the company came to the decision after “substantial inbound interest.” According to Gupta, the company has heard from government and commercial partners that liquidity is a “key driver to their decisions of who to partner with.” With its latest share sale, Archer said its total liquidity is more than $2 billion.

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