The stock market closed mixed on Wednesday as S&P 500 and NASDAQ recorded back-to-back losses. The former decreased 0.2% to 5,520, while the latter fell 0.3% to 17,084. The sluggish start this September continues amid worries about economic growth.
Tweet of the Day
Good! Prices need to come down A LOT. These people are CRAZY to think their homes are worth 66% more than in 2019. In Florida, $250k homes/apartments are asking around $425k. Ridiculous. https://t.co/NvflYe3pDA
— David Sharek (@GrowthStockGuy) September 1, 2024
Chart of the Day
Here is the one-year chart of Supermicro Computer (SMCI) as of August 13, 2024, when the stock was at $567.
Supermicro Computer fell after a quarter where profit margins dropped, but profit growth and sales growth were great. The company reported a 78% profit growth on a whopping revenue growth of 143%. Investors were upset that gross profit margin fell to 11.2% from 17.0% in the year-ago period, as a hyperscaler negotiated better prices. Operating margin was just 7.1% last quarter versus 11% in the year-ago period.
Supermicro Computer is getting competition from Dell and other AI datacenter builders. There was also a short-sellers report put out on the stock, which you can read here.
SMCI is a top holding in our Growth Portfolio and Aggressive Growth Portfolio.
