Super Micro Stock Is Spiraling Lower: What's Going On?

Super Micro Computer Inc (NASDAQ:SMCI) shares are tumbling Wednesday after the company reported preliminary financial results and provided a business update. JPMorgan also downgraded the stock and slashed its price target.

What Happened: Super Micro announced after the market close on Tuesday that it expects to report first-quarter revenue of $5.9 billion to $6 billion, down from previous guidance of $6 billion to $7 billion. The company expects to report first-quarter adjusted earnings of 75 cents to 76 cents per share.

For the second quarter, Super Micro expects to report revenue of $5.5 billion to $6.1 billion. The company anticipates second-quarter adjusted earnings of 56 cents to 65 cents per share.

Super Micro also provided a business update related to ...