Hindenburg Shorts Super Micro, Alleges Accounting Issues; Stock Falls 11%

Aug 27, 2024, 01:31 PM

Hindenburg Research has disclosed a short position in Super Micro Computer Inc. (SMCI), alleging accounting manipulation, sibling self-dealing, and sanctions evasion. The report claims fresh evidence of these activities, leading to a significant drop in Super Micro's stock price. The company's shares fell by as much as 11% pre-market, including a 9% premarket drop, following the release of the report. Hindenburg's investigation highlights concerns over accounting red flags, undisclosed related party transactions, and deteriorating product quality. The report has intensified scrutiny on Super Micro, a prominent player in the server equipment market.