In most circumstances, losing 25% of market value over a one-week period represents cause for concern. That’s basically the situation Super Micro Computer (SMCI) finds itself in following a rough earnings miss. However, the options market appears to be broadcasting an optimistic tune. Combined with an intriguing quantitative signal, it may be time to take a closer look at SMCI stock.
Last week, Super Micro tumbled badly after the artificial-intelligence server specialist missed Wall Street analysts’ consensus targets on both the top and bottom lines in the company’s fiscal first quarter. Making matters worse, the tech giant reported its lowest-ever gross margin at 9.3%. Based on the current financial picture, the margin might not improve in the near term, placing SMCI stock under a cloud of skepticism.
