Markets
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Luke Kawa

Super Micro falls after warning it still hasn’t fixed its accounting problems

Super Micro’s accounting issues aren’t fully behind it.

“We have identified material weaknesses in our internal control over financial reporting, which could, if not remediated, adversely affect our ability to report our financial condition and results of operations in a timely and accurate manner,” its 10-K filing said, released after the close on Thursday.

“We expect to continue to face many of the risks and challenges related to previously being delinquent in our SEC reporting obligations,” management added. “We may fail to remediate material weaknesses in our internal control over financial reporting and other material weaknesses may be identified in the future, which could adversely affect the accuracy and timing of our financial reporting.”

Super Micro Computer noted that its failure to deliver financials on time has put downward pressure on its share price in the past. The stock is down just over 3% in Friday morning trading.

Shares of the AI server company cratered last year and early into 2025 amid concerns over how it compiles its financials. The inability to deliver filings in a timely fashion nearly saw the stock delisted from the Nasdaq.

Late last August, Super Micro announced that it was delaying the filing of its annual report while it assessed internal controls over its accounting. That news came one day after short seller Hindenberg Research had published a report alleging accounting irregularities at the company. At the end of October, Ernst & Young resigned as its auditor, saying it had questions “about whether the Company demonstrates a commitment to integrity and ethical values consistent with” best business practices around internal controls.

Super Micro ultimately announced BDO USA as its new auditor, said that an internal review found no management misconduct, and was able to file its annual report at the last minute in February in order to stay listed on the Nasdaq.

We’ve discussed in the past that Super Micro is a rare breed in today’s market: a company that is tethered to the AI theme, but screens as (relatively) cheap.

It trades at an enterprise value to expected 12-month sales ratio of less than 0.8x, compared to 5.4x for the S&P 500 technology hardware and equipment industry group and 3.4x for the S&P 500 as a whole.

At this point, it’s tough to say that low multiple isn’t a direct result of the accounting cloud that continues to hang over the company and management’s persistent inability to date to deliver on the sales growth it’s been targeting.

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Tasha Matsumoto
1h
Stocks sink on weak jobs data and soaring oil prices

Stocks struggled after a big negative surprise from the February jobs report. Additionally, the Qatari energy minister warned of a potential spike in oil prices to $150 a barrel within weeks.

GREEN BAY, WISCONSIN - DECEMBER 07: Caleb Williams #18 of the Chicago Bears walks off the field after a loss to the Green Bay Packers at Lambeau Field on December 07, 2025 in Green Bay, Wisconsin. (Photo by John Fisher/Getty Images)
Luke Kawa
2h
Oracle drops after report that it and OpenAI scrapped plans to expand a data center site in Texas

Nvidia helped line up Meta as a new tenant for the location.

Stargate AI data center in Abilene Texas
markets
Max Knoblauch

Report: Boeing could unveil 500-jet order from China during Trump’s visit later this month

Shares of Boeing are up nearly 4% on Friday afternoon, following a Bloomberg report that the company could be close to finalizing a deal to sell 500 planes to China.

The deal was first reported in August and would be one of Boeing’s largest ever.

According to Bloomberg’s sources, the deal could be officially unveiled when President Trump travels to China at the end of the month. That trip could be delayed given the war in Iran. The deal, sources say, could still fall apart — similar language to when it was first reported on more than six months ago.

Boeing has been on the outside of the Chinese market, in terms of new orders, since 2019 amid escalating US-China trade tensions.

Boeing Close to 500-Jet Order With Trump-Xi Summit

Boeing Close to 500-Jet Order With Trump-Xi Summit

According to Bloomberg’s sources, the deal could be officially unveiled when President Trump travels to China at the end of the month. That trip could be delayed given the war in Iran. The deal, sources say, could still fall apart — similar language to when it was first reported on more than six months ago.

Boeing has been on the outside of the Chinese market, in terms of new orders, since 2019 amid escalating US-China trade tensions.

markets
Matt Phillips

Why software shares are withstanding the war jitters

The outbreak of the war in Iran has clearly rattled investors and created a few clear winners — mostly energy stocks — and losers — consumer staples, airlines, and, well, more or else everything else.

But there is one interesting outlier to that Manichaean market dynamic.

Software shares — often the same companies that the market was giving up for dead just a few weeks ago due to overexpectations of an AI-driven disruption — have been holding up remarkably well.

These companies, including Intuit, ServiceNow, Datadog, Snowflake, IBM, Workday, and Oracle, have actually had a pretty decent run since the war started with a combined US-Israeli attack on Iran last weekend.

A new note from RBC Capital’s Rishi Jaluria suggests this isn’t just a fluke. Looking at the performance of software stocks during periods of geopolitical stress and market volatility over the last 10 and 25 years, his team found that software shares appear fairly well insulated when these broader shocks hit. RBC wrote:

“The defensive nature of SaaS models and the mission-critical nature of many core software systems at the enterprise level (e.g., in the absence of mass layoffs that may create seat-based headwinds, geopolitical uncertainty and/or market volatility typically will not cause an enterprise CIO to consider ripping out their ERP, CRM, Cyber systems, etc.”

I briefly got Jaluria on the phone yesterday, and he explained a bit more about why he thinks investors might see software as a decent place to hide out from the current chaos.

“With everything in the Middle East, you have to think about not just oil and gas input prices but also supply chains,” he said. “With software, you’re not really thinking about that.”

In other words, there is no equivalent of a closure of the Strait of Hormuz that software investors have to worry about.

Others suggested that the near-term profitability of these giant software companies — aside from concerns about potential long-term disruption from AI — may look different in the face of the economic uncertainty that seems to be growing with the war, especially after a sell-off that has left them relatively attractively valued.

Mark Moerdler, who covers software stocks for Bernstein Research, says that while the AI worries are clearly real, software companies continue to be highly productive cash cows.

“Everyone is afraid that AI is a massive disruptor, and all these articles you read talk about AI as massive disruptor or the world is ending or whatever,” he said. “You don’t see it in the fundamental numbers of the companies I cover. They are delivering GAAP profits, free cash flow, and they’re good investment ideas.”

Max Knoblauch
5h
Jet fuel refining margins are surging to 20-year highs amid Iran war, threatening airlines

According to a Deutsche Bank note on Friday, airlines haven’t seen this phenomenon since the aftermath of hurricanes Katrina and Rita in 2005.

Airlines Face Rapidly Rising Fuel Costs

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