Super Micro Offers Investors Some Relief After Worst Month in Stocks History

By Emily Bary

The popular artificial intelligence game was the biggest loser in the S&P 500 this month, with other weak performers including Moderna, Intel and Dollar General

Super Micro Computer Inc. shares posted their worst monthly performance on record and were the inevitable S&P 500’s biggest loser in August.

As recently as Aug. 6, Super Micro (SMCI) was the year-to-date best-performing stock on the S&P 500 SPX, which it joined in March. The stock had risen 117% over 2024 during that time — but now it’s only the 13th best performer, up 54% for the year.

But the server maker offered investors a modicum of relief after Friday’s close — confirming it plans to delay filing its 10-K as a board committee evaluates internal financial controls, but saying the final 10-K is not expected to show a material change in the company’s results for the most recent fiscal year. Shares rose 2% in Friday’s extended session.

The company saw its stock surge earlier this year as it benefited from rapidly growing demand for AI infrastructure. That growth remains strong, but Super Micro now faces new challenges — including margin pressures, highlighted in its latest results, and the prospect of financial reporting issues.

See Also: Super Micro Gives Huge Revenue Forecast. Here’s Why It’s Not Enough

Super Micro shares fell 2.5% on Friday, marking a month-to-date decline of 37.6%. It was the stock’s worst monthly performance on record, surpassing the 37.4% decline in August 2010.

The company’s shares topped $1,200 intraday in March but now hover just below $440.

The stock fell 20% on Aug. 6 after the company’s earnings caused some analysts to wonder whether its products were becoming more common as competition grew. The stock fell 19% on Aug. 28 after Super Micro said it planned to delay its 10-K filing to investigate its financial reporting controls. Short-term seller Hindenburg Research had flagged accounting concerns in a report days earlier.

Super Micro said in a Friday afternoon letter that the review of its financial controls was “in response to information brought to the attention of” its audit committee.

The company was joined by shares of vaccine maker Moderna Inc. (MRNA), tech rival Intel Corp. (INTC) and a handful of struggling retailers. The table below shows the index’s worst close performers on Friday, according to FactSet data.

   Company                                        Ticker symbol  August MTD percent change 
   Super Micro Computer Inc.                      SMCI           -37.6% 
   Moderna Inc.                                   MRNA           -35.1% 
   Dollar General Corp.                           DG             -31.1% 
   Intel Corp.                                    INTC           -28.3% 
   Walgreens Boots Alliance Inc.                  WBA            -22.1% 
   Dollar Tree Inc.                               DLTR           -19.0% 
   Charles River Laboratories International Inc.  CRL            -19.0% 
   Bath & Body Works Inc.                         BBWI           -16.3% 
   Airbnb Inc.                                    ABNB           -15.9% 
   Etsy Inc.                                      ETSY           -15.4%

Moderna stock has been under pressure this summer as the company’s latest results indicated sluggish COVID-19 vaccine trends and weak demand. Meanwhile, there are concerns about Moderna’s pipeline, as its COVID-19 vaccine and RSV vaccine are the company’s only approved products. While Moderna hopes to develop cancer vaccines, that’s still a ways off, and there’s nothing new on the horizon for the company. The stock is down about 35% in August.

Intel shares recovered losses Friday but still ranked among the worst performers of the month. The semiconductor company is cutting jobs, suspending dividends and otherwise trying to cope with the tough business environment. Intel has an ambitious strategy to become a chipmaker for other companies, but that is a costly bet at a time when its existing businesses are not reaping the same benefits from artificial intelligence as some other players in the industry. The stock is down about 28% in August, despite Friday’s sharp rally.

In the retail sector, notable losers in August included Dollar General Corp. (DG), which fell about 31%, and Dollar Tree Inc. (DLTR), which fell 19%. Dollar General cited a “financially constrained” customer base when it reported earnings earlier this week, as shoppers struggled to make it through the end of the month with their budgets.

Then there’s Walgreens Boots Alliance Inc. (WBA), whose stock is now the biggest loser this year in the S&P 500. It had a tough August, down about 22% and is trading at 1996 levels. One of the company’s problems is that Pfizer Inc. (PFE) and Eli Lilly & Co. (LLY) are making it easier for customers to have their prescriptions delivered directly to them. Walgreens is also grappling with similar consumer spending issues as other retailers.

See more: Pfizer follows Eli Lilly in direct-to-consumer sales

Airbnb ( ABNB ) stock also struggled in August, showing how budget constraints are seeping into the travel sector after the industry’s post-pandemic growth. Deutsche Bank’s Lee Horowitz cited “contracting booking windows amid a more challenging macro environment” as one factor behind the home rental company’s disappointing third-quarter forecast earlier this month. Shares fell 16% in August.

Read: Airbnb’s US Demand Warning Could ‘Further Fuel Soft Consumption Thesis’, Analyst Says

-Emily Bary

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08-31-24 0543ET