Short sellers took aim at Super Micro (SMCI) earlier this year and it appears as though they were onto something. The company revealed today that auditor Ernst & Young quit and said it was “unwilling to be associated with the financial statements prepared by management.”
“We are resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management’s and the Audit Committee’s representations,” the accounting firm said.
Shares are down 34% premarket to $33.90 and back to flat on the year. The company was a Q1 darling as it rode the AI wave to a tripling of the share price.
Super Micro has still not issued its financial statements for this year, and there are reports that it is under federal investigation.
At its peak Super Micro's market cap exceeded $50 billion, which is close to the $60 billion peak of Enron.
