Shares in SMCI plunged in late trading after delivering preliminary results that fell well short of expectations. The board said that some customers had delayed their decisions, moving sales to the 4th quarter, but the market was having none of it, sending the stock down 17% in late trade.
- Revenue of $US4.5-4.6 billion missed analyst expectations of $US5.35bn and its own guidance of ~$US5.5bn.
- EPS of 29-31c was well below the 53c estimated by analysts.
The stock is now trading ~75% below its early 2024 high, and while we see solid support around the $US20 area, we have no interest in fading this bearish trend without good reason.
MM is neutral towards SMCI
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