Super Micro the worst performer in the Nasdaq 100 right before it’s booted from the index
Super Micro Computer is taking one on the chin this morning after the Nasdaq announced that its stock would be removed from its closely followed Nasdaq 100 Index.
CEO Charles Liang said he was “confident” the company would stay in the index last week, while investors voted with their feet and the stock suffered a 17% shellacking.
The move is emblematic of how dramatic the reversal in the server company’s fortunes have been this year: from a more than 300% year-to-date gain by its mid-March zenith that saw Super Micro Computer get added to the Nasdaq 100 in mid-July, to a drawdown that saw the stock down more than 80% amid alleged accounting irregularities, delays in filing key financial reports, and the resignation of its auditor.
The stock has doubled on three separate occasions this year, but is now up less than 10% year to date.
Its ouster is a big deal because hundreds of billions of assets are effectively tied to the Nasdaq 100, most notably the Invesco QQQ Trust, commonly known as the QQQ, which, loosely speaking, flows out of the exiled and into the new entrants. That’s the benefit of being added to major indexes — the quiet part said out loud by a Palantir board member ahead of its addition to the Nasdaq 100, also announced on Friday.
Super Micro’s Monday blues also stand in stark contrast to the pops in the other two stocks kicked out of the tech-heavy gauge (Moderna and Illumina) on market open.
In early trading, the stock is the worst-performing member of the index it’ll soon be booted from.
