2024-04-06 09:03:10 ET
Summary
- Super Micro Computer's stock has experienced a meteoric rise in 2024 and looks to be priced for perfection.
- I review the previous quarter's earnings and estimates for the upcoming release.
- I present a crude valuation model suggesting most future growth is priced into Super Micro's stock.
- I also provide speculation on Super Micro 4.0, the next strategic shift for the company.
Earnings Preview
No one on Wall Street predicted the meteoric rise of Super Micro Computer ( SMCI ) thus far in 2024. Super Micro closed the first day of trading in January of 2023 at $83.86 and closed December 31st, 2023 at $284.26. The stock closed the year up 238.97%.
Little did we all know that this gain would be dwarfed in the beginning months of 2024. The year set off with a bang when Super Micro pre-released earnings on January 18th, showing extremely strong YoY growth and an increase in sales guidance. The stock opened that day at $311 and closed the following day at $423. The company then released official earnings on January 29th and beat the January 18th guidance. The stock closed on January 29th at $495 and ran to $1,004 by February 15th. I subsequently covered this, calling it a stellar report . The stock is up 89% since that article, versus the 6% gain in the S&P....
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Super Micro Earnings Preview: Priced For Perfection, But Super Micro 4.0 Could Change This (Downgrade To Hold)