Supermicro drops as Hindenburg alleges ‘manipulation’ in short report

Shares of Super Micro Computer are sliding in pre-market trading after Hindenburg Research published a short report in which it said its investigation found “glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues.” The firm, which believes “Super Micro is a serial recidivist” that “benefitted as an early mover but still faces significant accounting, governance and compliance issues and offers an inferior product and service now being eroded away by more credible competition,” disclosed that it has taken a short position in shares of Super Micro Computer. In pre-market trading, shares are down about 9% to $510.01.