Markets
markets
Luke Kawa
8/29/25

Super Micro falls after warning it still hasn’t fixed its accounting problems

Super Micro’s accounting issues aren’t fully behind it.

“We have identified material weaknesses in our internal control over financial reporting, which could, if not remediated, adversely affect our ability to report our financial condition and results of operations in a timely and accurate manner,” its 10-K filing said, released after the close on Thursday.

“We expect to continue to face many of the risks and challenges related to previously being delinquent in our SEC reporting obligations,” management added. “We may fail to remediate material weaknesses in our internal control over financial reporting and other material weaknesses may be identified in the future, which could adversely affect the accuracy and timing of our financial reporting.”

Super Micro Computer noted that its failure to deliver financials on time has put downward pressure on its share price in the past. The stock is down just over 3% in Friday morning trading.

Shares of the AI server company cratered last year and early into 2025 amid concerns over how it compiles its financials. The inability to deliver filings in a timely fashion nearly saw the stock delisted from the Nasdaq.

Late last August, Super Micro announced that it was delaying the filing of its annual report while it assessed internal controls over its accounting. That news came one day after short seller Hindenberg Research had published a report alleging accounting irregularities at the company. At the end of October, Ernst & Young resigned as its auditor, saying it had questions “about whether the Company demonstrates a commitment to integrity and ethical values consistent with” best business practices around internal controls.

Super Micro ultimately announced BDO USA as its new auditor, said that an internal review found no management misconduct, and was able to file its annual report at the last minute in February in order to stay listed on the Nasdaq.

We’ve discussed in the past that Super Micro is a rare breed in today’s market: a company that is tethered to the AI theme, but screens as (relatively) cheap.

It trades at an enterprise value to expected 12-month sales ratio of less than 0.8x, compared to 5.4x for the S&P 500 technology hardware and equipment industry group and 3.4x for the S&P 500 as a whole.

At this point, it’s tough to say that low multiple isn’t a direct result of the accounting cloud that continues to hang over the company and management’s persistent inability to date to deliver on the sales growth it’s been targeting.

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Luke Kawa
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21h
Traders resurrected the long-dead “confidence fairy,” and it's juicing consumption despite the tariffs

It’s not the stock market versus the economy. It’s that the stock market is the economy.

2017 New York Comic Con - Day 1
markets
Luke Kawa
9/5/25

Robinhood, AppLovin, and Emcor pop on announcement of addition to S&P 500

Shares of Robinhood Markets, AppLovin, and Emcor are all rallying in post-market trading on Friday upon news that they’re being added to the S&P 500.

Shares of the brokerage popped 7.2%, the adtech company rose 7.8%, and the construction company was up a more modest 2.7% in the minutes following the announcement.

(Robinhood Markets, Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

Strategy, another stock rumored to be in the running for inclusion in the benchmark US stock index that has been passed over, sank 2.5% in postmarket trading.

Nia Warfield, Luke Kawa
9/5/25
S&P 500 falls as rate-cut optimism fizzles

The S&P 500 gave up early gains to close down 0.3%, while the Nasdaq 100 eked out a 0.1% advance and the Russell 2000 outperformed, rising 0.5%.

Brown bear on a rock
markets
Nia Warfield
9/5/25

Kenvue plunges after reports suggest RFK Jr. may try to link prenatal Tylenol use to autism

Kenvue sank 15% Friday after a WSJ report said Health and Human Services Secretary Robert F. Kennedy Jr. may attempt to link prenatal Tylenol use to autism in an upcoming government report.

Kenvue, the maker of Tylenol and formerly a division of Johnson & Johnson prior to a 2023 spin-out, pushed back, saying the science shows “no causal link” between acetaminophen use during pregnancy and autism, and pointed to FDA and medical groups that agree on the drug’s safety.

The FDA itself has found no “clear evidence” of harm but advises pregnant women to consult providers before taking OTC meds.

The report is also expected to float a folate-derived therapy as a potential treatment.

Tylenol is just the latest well-established medication to face scrutiny under Kennedy, who has already stirred controversy by reshaping vaccine policy and amplifying doubts about mRNA shots.

Kenvue shares are now down over 18% year-to-date.

RFK Jr., HHS to Link Autism to Tylenol Use in Pregnancy and Folate Deficiencies

RFK Jr.

The FDA itself has found no “clear evidence” of harm but advises pregnant women to consult providers before taking OTC meds.

The report is also expected to float a folate-derived therapy as a potential treatment.

Tylenol is just the latest well-established medication to face scrutiny under Kennedy, who has already stirred controversy by reshaping vaccine policy and amplifying doubts about mRNA shots.

Kenvue shares are now down over 18% year-to-date.

markets
Max Knoblauch
9/5/25

Lucid surges following 6 days of losses after headlines misidentify Cantor Fitzgerald’s lower split-adjusted price target as a good thing

It’s been a shortened week, but still a rough one for Lucid. Investor blowback to the luxury EV maker’s 1-for-10 reverse stock split has sent shares to all time lows this week.

After six straight days of closing lower, Wall Street appears to have decided enough is enough and is loading up on Lucid shares on Friday, sending them up 13% in recent trading. As of 2:10pm eastern, Lucid trading volumes were at more than 240% of their 30 day average.

Some of the move could be attributed to traders reading headlines that don’t take into consideration Lucid’s reverse split. Cantor Fitzgerald on Friday slapped a new price target on Lucid of $20, compared to its previous target of $3. Some news outlets (not us!) presented that as an increase. The problem: With the 1-for-10 reverse split in effect, a comparable price target would have been $30. The new $20 target is actually... a cut.

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