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Luke Kawa

Super Micro’s supercharged rally sputters ahead of “business update”

Traders are taking some chips off the table ahead of a business update from the highly volatile former AI darling Super Micro Computer after the close on Tuesday.

It’s a note of caution returning after investors got excited that the company had actually scheduled this update, sending the stock up nearly 60% in a week. Beyond any refresher on the company’s operational performance, investors will be clamoring for assurance that Super Micro will become current on its required financial filings in order to stay listed on the Nasdaq exchange. The company hasn’t filed its annual report for the 12 months ending June 2024 amid a drawn-out inquiry into its accounting that saw its auditor resign and a prominent short seller flag a number of alleged irregularities. An internal review commissioned by the company found no management misconduct. Required filings need to be received by the Nasdaq by February 25.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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