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Yiwen Lu11/5/24

Super Micro tumbles on lower guidance, further delay in filing

The embattled semiconductor company Super Micro Computer cut guidance for its first-quarter earnings and said that it “remains unable at this time to predict” when it will be able to file its annual report. Shares of Super Micro fell over 13% in after-hours trading.

In a press release, Super Micro announced preliminary results for the first quarter of 2025. The company expected net sales for the quarter to be $5.9 billion to $6 billion, down from a previous guidance of $6 billion to $7 billion. Analysts were expecting an average of $6.4 billion, according to FactSet.

The company also lowered the upper end of expected earnings per share. It is now expecting non-GAAP earnings per share to be between $0.75 to $0.76, instead of previous guidance of $0.67 to $0.83. Wall Street expected $0.73.

Super Micro “continues to work diligently on matters related to the Form 10-K for the fiscal year ended June 30, 2024,” the company said. The annual filing was due on August 29, 2024 but Super Micro said it was not able to file the report on time. This followed a short-seller’s report alleging accounting irregularities, questionable governance, and sanctions evasion at Super Micro. Just last month, auditor Ernst & Young resigned, dragging shares down as much as 30%.

However, Super Micro said in the release that an independent committee of its board of directors had completed an investigation based on EY’s concerns, which revealed “no evidence of fraud or misconduct.”

In a call with investors, Super Micro CEO Charles Liang said he was confident the challenges would not affect the company’s ability to serve its customers.

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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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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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