Why Super Micro Stock Is Sinking Today
Super Micro announced a new debt offering that sparked concerns of dilution. The sell-off made it the worst-performing stock in the S&P 500 today.
Super Micro to raise $2 billion
Super Micro announced it is raising $2 billion through a convertible note offering that matures in 2030. Only qualified institutional buyers can take part in the offering. The company plans to use the funds for "general corporate purposes, including to fund working capital for growth and business expansion."
The move sparked fears of dilution, which usually follows a convertible note offering like this. In order to combat the dilution, the company will use $200 million to enter into capped call transactions. The move is commonly used to soften dilution, but investors clearly did not feel it would be enough.
Super Micro has rebounded
The company has seen its share of controversy, narrowly avoiding a Nasdaq delisting just months ago by refiling financials, replacing its CFO, and adding board members. It was the subject of a damning short report detailing financial irregularities and questionable business practices.
Despite this, the company's stock has largely recovered as artificial intelligence (AI) giant Nvidia continues to rely heavily on the company, apparently unfazed by the allegations. Despite the implicit blessing of Nvidia's continued partnership, the track record of financial misconduct makes me nervous, and I would avoid the stock.
Should you invest $1,000 in Super Micro Computer right now?
Before you buy stock in Super Micro Computer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!*
Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 23, 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Cision Canada
a few seconds ago
- Cision Canada
Visionary Holdings Inc. Receives Nasdaq Notification Regarding Late Filing of Form 20-F
TORONTO, Aug. 13, 2025 /CNW/ - Visionary Holdings Inc. (the "Company") (NASDAQ: GV), a private education provider with technology integration, today announced that on August 5, 2025, it received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market ("Nasdaq") indicating that the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1) because it has not yet filed its Annual Report on Form 20-F for the fiscal year ended March 31, 2025 (the "Filing") with the Securities and Exchange Commission. Nasdaq's notice has no immediate effect on the listing or trading of the Company's ordinary shares on the Nasdaq Capital Market. However, if the Company fails to timely regain compliance with the Rule, its securities may be subject to delisting from Nasdaq. In accordance with Nasdaq's Listing Rules, the Company has 60 calendar days, or until October 6, 2025, to submit a plan to Nasdaq to regain compliance. If Nasdaq accepts the Company's compliance plan, it may grant the Company an extension of up to 180 calendar days from the Filing's due date, or until January 26, 2026, to file its Form 20-F and regain compliance. The Company is actively working with its independent auditor to complete the audit of its financial statements for the fiscal year ended March 31, 2025, and is preparing its Annual Report on Form 20-F. The Company intends to submit a compliance plan to Nasdaq within the prescribed time period and is committed to regaining compliance as quickly as possible. About Visionary Holdings Inc. Visionary Holdings Inc. is a private education provider located in Canada, with subsidiaries in both the private and public education sectors. The Company aims to provide high-quality, technology-enhanced education services to domestic and international students. Forward-Looking Statements This press release contains forward-looking statements within the meaning of applicable securities laws. Forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include the Company's ability to complete and file the Form 20-F within the time required and to regain compliance with Nasdaq's continued listing standards. The Company assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.
Globe and Mail
a few seconds ago
- Globe and Mail
HLK Marketing Launches Confidential Celebrity Reputation Management Service
"'Our clients expect speed, accuracy, and silence,' said Hayden Koch, Founder of HLK Marketing. 'We own the outcome. Every move is designed to protect the client, remove negative content, and restore a positive online presence—fast.'" Hayden Koch at HLK Marketing is thrilled to announce a new online reputation management service for celebrities, executives, CEOs, family offices, and the .001%, whose online reputation means everything. Trusted by dozens of high-net-worth individuals and businesses, Hayden focuses on speed, precision, and most importantly, results, where other reputation management companies cannot. HLK Marketing, founded by reputation expert Hayden Koch, has launched a new celebrity reputation repair service built for celebrities, executives, and CEOs who demand fast, discreet, and lasting online reputation management. The service delivers rapid content suppression and removal, including proven Reddit link removals, combined with precision SEO, PR alignment, and AI search control. The mission is clear: remove negative content, repair the online image, and protect client reputations in the long term. For High-Profile Clients Who Require Results HLK Marketing is a reputation management firm trusted by a range of influential clients: What Sets HLK Marketing Apart Results-driven online reputation management with measurable outcomes Proven takedown record for Reddit link removal and other harmful content targeting a public figure Coordinated legal, PR, and SEO strategy under one roof Confidentiality-first operations backed by strict NDAs About HLK Marketing Based in Huntington Beach, HLK Marketing delivers elite online reputation management for high-profile individuals worldwide. The firm specializes in high-stakes content removals, narrative control, and proactive protection of the online image. Clients include celebrities, executives, and other public figures seeking to protect and enhance their personal brand. Secure a confidential consultation today: Media Contact Company Name: HLK Marketing Contact Person: Hayden K. Email: Send Email City: Huntington Beach State: California Country: United States Website:
Globe and Mail
a few seconds ago
- Globe and Mail
Should Investors Hold or Fold Oracle Stock at a P/E Multiple of 36.7X?
Oracle ORCL stands at a critical juncture as its stock trades at a price-to-earnings multiple of 36.7 times, significantly above its historical average of 26.8 times over the past decade, and the Zacks Computer-Software industry average of 35.32x. While the software giant's aggressive pivot to cloud infrastructure and AI has driven impressive growth, the elevated valuation raises important questions for investors contemplating their next move in 2025. Cloud Momentum Versus Rich Valuation The company's transformation from traditional database software to a cloud infrastructure provider has yielded remarkable results. Oracle reported fiscal 2025 fourth-quarter revenues of $15.9 billion, representing an 11% year-over-year increase, with cloud infrastructure revenues surging 52% to $3 billion. CEO Safra Catz projects even more aggressive expansion ahead, forecasting cloud infrastructure growth to accelerate from 50% in fiscal 2025 to more than 70% in fiscal 2026. This momentum has attracted major clients, including Meta and Chinese retailer Temu, while partnerships with the Cleveland Clinic and the UAE's G42 for AI healthcare platforms demonstrate Oracle's expanding reach beyond traditional enterprise software. The Zacks Consensus Estimate for fiscal 2026 revenues is currently pegged at $66.6 billion, suggesting growth of 16.02% from the year-ago quarter's reported figure. The consensus mark for fiscal 2026 earnings is pegged at $6.73 per share, up 0.1% over the past 30 days. The company's involvement in the high-profile Stargate AI infrastructure initiative alongside OpenAI and SoftBank further validates its strategic positioning in the artificial intelligence revolution. Oracle plans to invest more than $25 billion in capital expenditures in fiscal 2026, more than triple its fiscal 2024 spending of $7 billion, reflecting management's confidence in sustained demand. Despite these growth catalysts, Oracle's current valuation presents a compelling case for patience. The stock's forward P/E ratio has expanded dramatically from its recent lows, now trading at levels not seen since the dot-com era. At 36.7 times earnings, Oracle commands a premium valuation that exceeds the sector average by a considerable margin. This elevated multiple leaves little room for error, particularly if growth rates fail to meet management's ambitious projections or if broader market conditions deteriorate. ORCL's P/E Ratio F12M Ratio Depicts Premium Valuation Cloud Market Competition and Stock Performance Oracle faces formidable competition in the cloud infrastructure market, where Amazon 's AMZN AWS commands 30% market share, Microsoft 's MSFT Azure holds 20% and Alphabet GOOGL -owned Google Cloud captures 13% in second-quarter 2025, per recent data from Synergy. While Amazon continues dominating through AWS scale advantages, Microsoft benefits from seamless enterprise integration, and Google leverages AI expertise, Oracle differentiates through competitive pricing and superior database integration. The company's recent partnerships with OpenAI and involvement in high-profile projects suggest that Oracle can carve a profitable niche despite trailing Amazon, Microsoft, and Google in absolute market share. Shares of Oracle have gained 52.3% so far this year, outperforming the Zacks Computer and Technology sector's growth of 14.6%. Shares of Microsoft, Google and Amazon have returned 25.6%, 7.4% and 0.9% year to date, respectively. Year-to-Date Performance Strategic Position for Patient Investors For existing shareholders, holding Oracle stock appears prudent given the company's strong competitive position and robust growth trajectory. The recent 25% dividend increase to 50 cents per share quarterly provides additional income while investors wait for the growth story to unfold. The company's remaining performance obligations of $138 billion offer substantial revenue visibility, supporting the long-term investment thesis. However, new investors might benefit from exercising patience. Oracle's fiscal third-quarter results in March 2025 disappointed investors when the company missed analyst expectations, demonstrating that execution risks remain despite favorable long-term trends. The stock's poor year-to-date performance suggests market participants are already recalibrating expectations. The combination of accelerating cloud growth, strategic AI partnerships, and massive infrastructure investments positions Oracle well for the future. Yet at current valuations, the stock offers a limited margin of safety. Investors should monitor upcoming quarterly results closely, particularly cloud infrastructure metrics and cash flow generation, to assess whether the premium valuation remains justified. For now, existing shareholders should maintain positions while prospective buyers await more favorable entry points that better balance Oracle's undeniable growth potential with valuation discipline. Oracle currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. See our %%CTA_TEXT%% report – free today! 7 Best Stocks for the Next 30 Days Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Oracle Corporation (ORCL): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report
