Why Super Micro Computer Stock Is Plummeting Today
Super Micro Computer (NASDAQ: SMCI) stock is getting hit hard in Thursday's trading. The server specialist's share price was down 10.8% as of 2:45 p.m. ET. The stock was down as much as 18.6% earlier in the daily session, and trading was temporarily halted due to the high level of volatility.
The Wall Street Journal published a report this morning stating that the U.S. Department of Justice (DOJ) had commenced an investigation into Supermicro. The reported investigation comes on the heels of a report published by short-seller Hindenburg Research alleging bad accounting practices and structural weaknesses in the business.
According to the report, a San Francisco-based attorney at the U.S. prosecutor's office in the city has been contacting people connected to Super Micro Computer to gather information about the company. The report's authors suggest that the inquiries appear to be related to accusations of accounting violations from a former employee.
Source Fool.com
