Finance

Super Micro Computer Sank Amid Financial Reporting Troubles in Recent Months. Could the Stock Become the Biggest Recovery Story of 2025? | The Motley Fool

Published

1 year ago

December 8, 2024

Super Micro Computer Sank Amid Financial Reporting Troubles in Recent Months. Could the Stock Become the Biggest Recovery Story of 2025? | The Motley Fool

Super Micro Computer (SMCI 6.78%) roared into the year with strength as a leader in the high-growth area of artificial intelligence (AI). The company makes a variety of equipment, such as servers and full-rack scale solutions, crucial to AI data centers, and this has helped revenue soar in the triple digits in recent quarters. The share price followed, climbing 188% in the first half of the year.

But a series of troubles that started with a short report in late August set off a decline in investor confidence — and a drop in the share price. The shares tumbled 22% in the four trading sessions after the short report alleging accounting problems at Supermicro. They continued their declines as the company delayed filing its 10-K annual report and a 10-Q quarterly report and lost its auditor.

Since that news several weeks ago, though, Supermicro seems to have turned things around. The company hired a new auditor to catch up on those filings, and in the latest positive news, a special committee investigating Supermicro’s accounting practices found no evidence of fraud. Could Supermicro, now trading at bargain levels, become the biggest recovery story of 2025? Let’s find out.

Image source: Getty Images.

Supermicro’s successes and troubles

First, let’s walk through Supermicro’s successes and troubles over the past year. The company started 2024 off on the right foot, reporting its first $3 billion quarter, with revenue that surpassed annual revenue as recently as 2021. Demand from AI customers was soaring, and catalysts such as the launch of Nvidia‘s new Blackwell architecture promised to help this momentum continue. Supermicro incorporates chip designers’ innovations into its systems, so their new releases translate into growth for the equipment maker.

Another victory for Supermicro: The S&P 500 invited the stock to join, showing that Supermicro had become one of the major companies powering today’s economy. Finally, Supermicro shares climbed so high — beyond $1,000 earlier this year — that the company announced a 10-for-1 stock split, with the new split-adjusted shares to start trading as of Oct. 1. By lowering the per-share price through the issuance of new shares to current holders, stock splits open up the investment opportunity to a broader range of investors.

Then came the difficult period, launched by a Hindenburg Research short report alleging “glaring accounting red flags” and other problems. Supermicro called the statements “false or inaccurate.” But the shares continued to decline as the company delayed its annual report and a quarterly report and its auditor quit. This delay in reporting prompted the Nasdaq to send Supermicro a non-compliance letter, the first step to a possible delisting.

The special committee’s conclusions

Meanwhile, an independent special committee formed by the Supermicro board reviewed points brought up by former auditor Ernst & Young and recently completed its mission. The special committee recommended the appointment of a new chief financial officer and the addition of executive-level positions to keep everything on track, considering Supermicro’s rapid growth in recent times. But the committee, in its review, found no evidence of fraud.

Supermicro also recently said it sent a compliance plan to the Nasdaq and aims to file reports according to the exchange’s timetable. Importantly, the company said it doesn’t expect any restatements from the fiscal year that ended in June or previous fiscal years.

These two elements — the special committee’s conclusion and Supermicro’s compliance plan — are excellent news, showing that the worst of outcomes may have been avoided. I’m talking about findings of fraud, a Nasdaq delisting, and major financial restatements.

Is Supermicro out of the woods?

That said, before we can truly breathe a sigh of relief, it’s important to see the audited financial statements once they’re available. Right now, it’s too early to say Supermicro is completely out of the woods. So, even though Supermicro shares trade at the bargain level of 14 times forward earnings estimates, it’s still risky to buy the stock today.

Now, let’s get back to our question: Could Supermicro become the biggest recovery story of 2025? This will depend on the contents of those financial statements and whether they’re filed according to the Nasdaq’s requested timetable.

If Supermicro misses those targets, it’s unlikely the shares will take off. But if the company does satisfy investors with its earnings and the Nasdaq with compliance, Supermicro shares may soar — and this AI equipment giant could become the top recovery story of the new year.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Finance

Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

Published

2 hours ago

April 21, 2026

Press Room

Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

Little League® International has announced that Reilly Barnes accepted a new role as Purchasing/Finance Assistant, effective April 6, 2026. Barnes transitions from a temporary Purchasing Assistant to this full-time position to assist in the year-round demands of purchasing for the organization, as well as the region and Little League Baseball and Softball World Series tournaments.

“We are thrilled to welcome back Reilly to our team as a full-time Purchasing/Finance Assistant. Reilly’s prior experience, time management, and attention to detail make him an invaluable asset to the purchasing team,” said Nancy Grove, Little League Materials Management Director. “We look forward to the positive contributions he will have on our organization.”

In this role, Barnes will be responsible for processing purchase requisitions, coordinating souvenir products, and tracking order fulfillment. He will also assist with evaluating suppliers, reviewing product quality, and negotiating contracts for effective operations.

After most recently working as a Logistician Analyst at Precision Air in Charleston, South Carolina, Barnes, a Williamsport native, returns after honing his skills in the fast-paced environment. Prior to his time at Precision Air, Barnes served as a Procurement Specialist at The Medical University of South Carolina, where his expertise and knowledge were instrumental in supporting both education and healthcare needs.

“I am thrilled to return to Little League in this full-time role,” said Barnes. “Coming back to my hometown and having the opportunity to work for an organization that has played such a special part of my upbringing means a lot. I can’t wait begin this new opportunity.”

Barnes graduated from the University of Pittsburgh in 2022 with a B.A. in Supply Chain Management, Finance, and Business Analytics.

Finance

Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

Published

15 hours ago

April 20, 2026

Press Room

Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

As conflict continues to destabilise the Middle East, the Gulf States elite are seeking solace in European alternatives that offer comparable financial benefits with a far lower risk of war on the doorstep. One such destination is the small Swiss town of Zug, which is becoming a “bolt-hole” for Gulf-based wealth, said the Financial Times.

‘Swiss Monaco’

Switzerland’s reputation as a magnet for the world’s financial elite is nothing new. In 2025, the country recorded the “densest concentration of millionaires” with an estimated 146 per 1,000 adults last year, said The Times. Now home to around 135,000 people, Zug’s canton – also named Zug – used to be the “poorest corner of Switzerland” until it lowered its tax rates in the 1950s. “Now it has corporate tax rates of 16.2% compared with 40% in the US and 33.3% in France.”

“In almost all ways Zug is unremarkable”, with its traditional Swiss architecture and cobbled waterfront lanes. But if its “Alpine lake water is clear”, the financial scene is more “murky”. Many credit Marc Rich and Pincus “Pinky” Green, founders of metals and minerals trading firm Glencore, with the transformation of Zug from a “Swiss backwater” to its status as the “Swiss Monaco”. The multinational is headquartered just outside Zug, and has made the town a “global powerhouse for trading crude and refined oil products”. It should be “no surprise” that the “1% of the world’s 1%” are taking shelter there, and at the same time, hoping to still “keep a hand in the oil business”.

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“Industry estimates suggest that tens of billions of dollars could flow into Switzerland depending on how the current conflict evolves,” said the Outbound Investment Group. The “immediate trigger” for the “surge in interest” from Gulf-based investors is the war in the Middle East. However, Switzerland’s underlying appeal is its unwavering “Swissness”: “political neutrality”, “strong legal frameworks”, and reputation for wealth preservation. It’s a safe bet with no sign of slowing.

‘Availability tightening’

There are some drawbacks, said the FT. For “would-be arrivals”, the appeal of the region for Middle Eastern residents comes with “practical constraints”. Those outside the EU “face a higher bar”. Usually, the condition of residency is “tied” to employment or company formation. For the “very wealthy”, there is the added option of “negotiated lump-sum taxation agreements with cantonal authorities” that allow individuals to “pay a flat annual tax based on living expenses rather than global income”.

Even if they are holders of EU passports, the “main bottleneck” is the availability of property. Competition is “intense” and “rental supply is extremely limited, with properties often snapped up within days”. With Zug’s “availability tightening”, other cantons in the region with similar tax arrangements could benefit, such as Lugano, an Italian-speaking city in the Ticino region.

The uncertainty of the duration of the conflict is one of the most pressing concerns, said Bloomberg. The recent breakdown of ceasefire talks risks “forcing a reckoning for the professional and expat classes considering options after putting down roots in the Middle East”.

The short-term benefits of physical safety from leaving the Gulf are clear, but changing tax residency “takes time” and practicalities such as finding schools and “conforming to national requirements such as opening local bank accounts” is often “complicated and time-consuming”. The region’s ultra-wealthy are facing “uncomfortable decisions on whether to make the move permanent, especially with the end of the school year in sight”.

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Finance

How much will Social Security go up next year? See latest forecast

Published

1 day ago

April 20, 2026

Press Room

How much will Social Security go up next year? See latest forecast

Before Social Security payments are posted this week, many retirees are looking ahead at the potential Cost of Living Adjustment for 2027 with an advocacy group predicting a similar increase to 2026.

On April 10, The Senior Citizens League — a nongovernmental advocacy group for seniors — released its monthly COLA forecast for 2027, saying data showed a 2.8% increase is likely.

“Over the last seven weeks, crude oil prices have soared, and fuel prices have followed suit. Consumers are getting pinched at the pump as gas prices soar, while businesses are paying more for transportation and/or production costs. This energy price shock is beginning to show up in the monthly U.S. inflation report, and it’s having a tangible impact on 2027 COLA forecasts,” The Motley Fool, a financial and investing advice company, and USA TODAY content partner, reported on April 18.

The official announcement will come in October, as it’s based on third-quarter inflation data.

According to Consumer Price Index data published last week, the annual inflation rate reached a two-year high of 3.3%, up 0.9% over the last month. This is largely due to soaring oil prices caused by the war in Iran.

Social Security payments are always scheduled on Wednesdays, with the final wave of this month scheduled for April 22, according to the Social Security Administration. The schedule is based on the birth dates of the recipients — retired, disabled workers or survivors.

Here’s who will get a Social Security check this week and more on the 2027 COLA forecast:

When is the final Social Security in April 2026?

Social Security benefits are sent out based on the recipients’ birth dates. Wednesday, April 22, is the final wave of payments for those with birth dates between the 21st and the 31st of April.

What is the 2027 COLA forecast?

The 2027 COLA increase is forecast to be 2.8% due to continuing inflation prices, according to The Senior Citizens League’s April 10 press release. If the SSA approves that rate of increase, average payment for retired workers would go up by $56 per month in January 2027.

The SCL releases a COLA prediction each month based on the Consumer Price Index, Federal Reserve interest rate and the National Unemployment rate from the U.S. Bureau of Labor Statistics.

Beneficiaries who want to stay updated with the monthly predictions may visit the SCL’s “COLA Watch” webpage that includes the forecast, calculations, historical trends and more.

The official COLA increase for 2027 will be announced in October 2026.

What were the big Social Security changes in 2026?

At the beginning of 2026 recipients received a 2.8% COLA for Social Security and Supplemental Security Income (SSI) payments, according to the SSA’s COLA Fact Sheet and American Association of Retired Persons, increasing payments about $56 per month.

Here are more details on the 2026 COLA increase, per the SSA:

The maximum amount of earnings subject to the Social Security tax increased to $184,500.
The earnings limit for workers who are younger than full retirement age (67 years old) increased to $24,480. (There will be a $1 deduction for each $2 earned over $24,480.)
The earnings limit for people reaching their full retirement age in 2026 increased to $65,160. (There will be a $1 deduction for each $3 earned over $65,160, until the month the worker turns full retirement age.)
There is no limit on earnings for workers who are at full retirement age or older for the entire year.

What should I do if I don’t get my Social Security payment?

According to the SSA, if you don’t receive your payment on the scheduled date, wait three days additional days, then call their office.

Where are the Social Security offices in Michigan?

There are 48 offices in Michigan, and to find an office near you, recipients may use the office locator via the Social Security’s website by entering your zip code for office hours, numbers, available services and more.

How can I replace my Social Security card?

The personal account, “my Social Security” allows recipients to manage their personal records, including a request for a replacement Social Security card and benefit statements for taxes and more. New accounts are created using ID.me or Login.gov as a multifactor authentication.