NEWS
Semis Sliced On Shocking SMCI News

A shock hitting a major chip stock and lackluster AMD earnings weighed on the market, while a hotter-than-expected jobs print did not help matters. “Mag 7” results have been somewhat muted so far, but all eyes are on Apple and Amazon tomorrow as the bulls seek renewed momentum in the major indexes. 👀

Today's issue covers  Super Micro’s auditor scare, the U.S. economy humming along, and a recap of the day’s biggest earnings movers. 📰

Here’s the S&P 500 heatmap. 5 of 11 sectors closed green, with communication services (+0.61%) leading and technology (-1.59%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $CMAX, $TTI, $UIS, $TWLO, $CLH 📉 $CVNA, $QRVO, $SMCI, $MGA, $DJT*

*If you’re a business and want to access this data via our API, email us.

COMPANY NEWS
Super Micro Slammed By Auditor Exodus 😱 

Following AMD's lackluster results, semiconductors were already on shaky footing when Super Micro Computer ($SMCI) added to the weakness with a major shock.

Just before today’s opening bell, it was revealed that Ernst & Young resigned as Super Micro’s auditor, citing significant concerns over the company’s internal controls, board independence, and accounting practices. The resignation letter said EY is “unwilling to be associated” with management’s financial statements. 🤯 

This added to worries sparked by Hindenburg Research’s short seller report, a delayed 2024 financial statement filing, and a reportedly ongoing federal investigation. 😟 

As for a response, the company’s SEC filing says it disagrees with EY and has hired law firm Cooley and a forensic accounting firm to review its internal controls, though that review is ongoing.

With no clear answers, bears used the opportunity to push the stock down another 33% on the day. Down nearly 75% from its March all-time highs, Stocktwits sentiment is in ‘extremely bearish’ territory as investors and traders avoid the dip. 🙅 

As the company is Nvidia’s third-largest customer, weakness inevitably led to a selloff across the sector. With the broader market’s momentum waning and these stocks trading near technical levels, all eyes are anxiously watching them. 😬 

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