David Paul Morris/Bloomberg/Getty Images
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Shares of Super Micro Computer fell sharply Monday morning after the impact of two reports late Friday extended into this week.
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The server maker is one of three stocks to be removed from the Nasdaq 100 Index starting next week, as the shares have lost 70% of their value since March.
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Bloomberg also reported that Super Micro has hired Evercore to potentially help the company raise capital.
Supermicrocomputer (SMCIShares fell Monday morning after the stock felt the impact of a few headlines that came out after the bell on Friday, including a possible capital raise and the stock’s removal from the Nasdaq 100 Index.
The Nasdaq said on Friday that Palantir (PLTR), MicroStrategy (MSTR), and Axon Enterprise (AXON) would be added to the index starting next week, replacing Super Micro Computer, Moderna (MRNA), and Illumina (ILMN).
Super Micro is being replaced less than six months after its July addition to the index, as its shares have lost 70% of their value on Monday since closing at a record $118.81 in March.
Along with the index deletion, Bloomberg also reported Friday that Super Micro has hired investment banking advisory firm Evercore (EVR) to help the server maker raise capital. The increase could be in equity or debt, or it could take the form of an investment from a private equity firm. Bloomberg reported.
The hardware maker has raised capital once this year, as it said in March it would sell 2 million new shares as it looked to raise $2 billion.
Shares of Super Micro fell in the second half of the year as the company saw earnings reports fall short of expectations. Also, the company was the subject of a short-seller report alleging accounting manipulation and other issues, along with the resignation of its last accountant. Super Micro also delayed the filing of its annual report for the last fiscal year and was granted a filing extension last week to ensure the stock would not be delisted from the Nasdaq.
Shares of the technology company fell more than 11% in premarket trading on Monday.
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