Justice Department Investigation Sparks 13.1% Drop in Super Micro’s Shares

  • Super Micro’s stock drops 13.1% after reported Justice Department probe
  • Investigation follows short seller report of accounting red flags
  • Company delays annual report to review accounting practices

Shares of Super Micro Computer Inc. (SMCI) experienced a significant decline of 13.1% in morning trading on Thursday, following a Wall Street Journal report that the company is under investigation by the U.S. Department of Justice. The newspaper cited unnamed sources familiar with the matter. This development comes after a short seller published a report in late August alleging accounting irregularities, which led to Super Micro announcing that its annual report would be delayed as it needed more time to review its financial practices. As a result, the stock has plummeted 52.1% over the past three months, making it the worst performer in the S&P 500 during this period.

Factuality Level: 7
Factuality Justification: The article provides accurate and objective information about the stock’s performance and the ongoing investigation. However, it does not include any personal opinions or fallacies.
Noise Level: 6
Noise Justification: The article provides relevant information about a company’s stock performance and an ongoing investigation but relies heavily on unnamed sources and does not offer much analysis or context beyond the immediate market reaction.
Public Companies: Super Micro Computer Inc. (SMCI), S&P 500 (SPX)
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Super Micro Computer Inc. shares
Financial Rating Justification: The article discusses a significant drop in the stock price of Super Micro Computer Inc., which is a financial topic related to a company’s performance and its impact on the stock market.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Financial Crash or Crisis
Impact Rating Of The Extreme Event: Severe
Extreme Rating Justification: The stock plunge of 13.1% in morning trading and the overall decline of 52.1% over three months make it a severe impact on the company’s value.
Deal Size: Output: 0
Move Size: The market move size is a 13.1% dive in shares of Super Micro Computer Inc.
Sector: Technology
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Reported publicly: www.marketwatch.com