Why Super Micro Computer Stock Is Plummeting Again Today

Super Micro Computer (NASDAQ: SMCI) stock is getting crushed again in Thursday's trading. The company's share price was down 11.7% as of 1:45 p.m. ET, and had been down as much as 17.7% earlier in the daily session.Yesterday, Supermicro submitted a filing to the Securities and Exchange Commission (SEC) revealing that Ernst & Young (EY) had resigned from its role as the company's accounting firm and auditor. EY also published its resignation letter and outlined general reasons for stepping back from the role. Following the news, Supermicro stock has been hit with coverage suspensions and ratings downgrades from analysts.Ernst & Young's resignation has dealt a dramatic blow to Supermicro stock. In EY's resignation letter, the Big Four accounting firm said that it was stepping back as a result of "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." EY also indicated that it saw reputational risks in being associated with financial statements made by Supermicro.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool