Supermicro Slumps as Stock to be Removed from Nasdaq 100

39 minutes ago

Super Micro Computer (SMCI) shares slumped Monday morning as the stock feels the impact of a pair of headlines that came out after the bell Friday.

The Nasdaq said Friday that Palantir (PLTR), MicroStrategy (MSTR), and Axon Enterprise (AXON) would join the index starting next week, replacing Supermicro, Moderna (MRNA), and Illumina (ILMN). Supermicro is being replaced on the index less than six months after it was added in July, as shares had lost 70% of their value entering Monday since closing at a record $118.81 in March.

Along with the index removal, Bloomberg also reported Friday that Supermicro has hired investment banking advisory firm Evercore (EVR) to assist the server maker in raising capital. The raise could involve equity or debt, or take the form of an investment from a private equity company, Bloomberg reported.

The hardware manufacturer has raised capital once this year, as it said in March that it would sell 2 million new shares as it looked to raise $2 billion.

Super Micro shares have fallen in the second half of the year as the company has seen earnings reports miss estimates, and has also been the subject of a short-seller’s report alleging accounting manipulation and other issues, along with the resignation of its last auditor. Super Micro also delayed the filing of its annual report for its last fiscal year, and last week received an extension for the filing to ensure the stock wouldn’t be delisted from the Nasdaq.

The stock was down 4% in early trading.

–Aaron McDade

Palantir Levels to Watch as Stock Added to Nasdaq 100

2 hr 3 min ago

Palantir Technologies (PLTR) shares are likely to remain in the spotlight after the Nasdaq announced late Friday that the analytics software provider, along with MicroStrategy (MSTR), and Axon Enterprise (AXON), had been added to the Nasdaq 100 Index.

The stock has continued to trend sharply higher after breaking out from a cup and handle pattern, though the relative strength index cautions overbought conditions that could lead to near-term price fluctuations.

The measuring principle, which calculates the percentage change to the cup and handle’s “cup” and adds it to the pattern’s top trendline value, projects a bullish price target of $140.07.

Investors should watch key lower levels on Palantir's chart at $45 and a zone of support between $33 and $29.

The stock was little changed at around $76 in recent premarket trading.

Read the full technical analysis piece here.

–Timothy Smith

Futures Tied to Major Indexes Move Higher

2 hr 47 min ago

Dow Jones Industrial Average Futures were up 0.2%.

S&P 500 futures also added 0.2%.

Nasdaq 100 futures were up 0.4%.

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