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Super Micro Computer CEO Charles Liang appears the Computex conference in Taipei, Taiwan, on June 5, 2024.

Annabelle Chih | Bloomberg | Getty Images

Super Micro Computer joined the Nasdaq 100 in July. Five months later, it’s out, and the stock is down 7% on the news.

Nasdaq said late Friday that Super Micro is being removed from the index, which is made up of the top 100 non-financial stocks on the Nasdaq and is the basis for the Invesco QQQ Trust exchange-traded fund, one of the most actively traded ETFs.

The announcement is the latest in a roller coaster of a year for Super Micro, which rocketed to a record high of $118.81 in March, as demand soared for the company’s servers packed with artificial intelligence processors. The company’s market cap reached over $70 billion, high enough to merit inclusion in the S&P 500.

Super Micro is now worth about $20 billion, about a quarter the size of the median market cap of companies in the Nasdaq 100. Nasdaq will also remove Illumina and Moderna from the group, effective Dec. 23.

The revision will make room for the additions of Axon Enterprise and Palantir Technologies, as well as MicroStrategy, a company whose value is tied to its billions of dollars worth of bitcoin purchases. MicroStrategy shares have gained almost 600% so far this year and were up 4% on Monday.

For Super Micro, the story started to turn in August, when the company said it wouldn’t file its annual report with the SEC on time. Noted short seller Hindenburg Research then disclosed a short position in the company, and said in a report that it identified “fresh evidence of accounting manipulation.”

In October, Ernst & Young resigned as Super Micro’s auditor, resulting in a 33% stock plunge. An independent special board committee evaluated concerns from Ernst & Young and found no misconduct following a three-month investigation. The report recommended the company replace its CFO. The company said in November that BDO was its new auditor.

Super Micro was at risk of being delisted from Nasdaq altogether for a second time because of its delayed financial reports, but two weeks ago it received an extension until February 2025.

In a preliminary earnings report, the company said revenue for the third quarter was up 181% year over year, below consensus.

“Competition is strong, but I believe we are in good position,” CEO Charlies Liang said during a November conference call with analysts. Rivals include Dell and HPE.

WATCH: Super Micro appoints BDO as independent auditor

Super Micro appoints BDO as independent auditor

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Amazon shutters 4 Fresh stores in Southern California as grocery strategy keeps shifting

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Amazon shutters 4 Fresh stores in Southern California as grocery strategy keeps shifting

An employee arranges a salad dressing display at an Amazon Fresh grocery store on December 12, 2024 in Federal Way, Washington.

David Ryder | Getty Images

Amazon is closing four more Fresh supermarkets in Southern California as the e-commerce giant continues to focus its grocery strategy around Whole Foods and delivery.

The closures will take place in the coming weeks, Amazon confirmed to CNBC. They follow the shuttering of four other U.S. locations in recent months, in Washington, Virginia, New York and a Los Angeles suburb.

“Certain locations work better than others, and after an assessment, we’ve made the decision to close these Amazon Fresh locations,” Amazon spokesperson Griffin Buch said in a statement. “We’re working closely with affected employees to help them find new roles within Amazon wherever possible.”

At one Fresh supermarket in La Verne, California, employees were told to gather for an all-hands meeting on Wednesday, according to an internal message viewed by CNBC. They learned at the meeting that the store would close in mid-November, and that employees would receive a severance package, according to a person familiar with the matter who asked not to be named because the details were confidential.

The other three stores that are closing are in cities of Mission Viejo, La Habra and Whittier.

Last week, Amazon said it intends to close 14 Fresh grocery stores in the U.K. and convert its five other locations there into Whole Foods markets.

Amazon said it regularly evaluates its store portfolio, which can lead to opening, reopening, relocating or closing certain locations. In the U.S., the company has more than 60 remaining Fresh stores. Last year, the company removed its “Just Walk Out” cashierless technology from the stores. It’s also been culling its footprint of Go cashierless convenience stores.

Amazon has been determined to become a major grocery player for nearly two decades. The company launched Amazon Fresh in 2007, then a pilot project for fresh food delivery, before acquiring upscale chain Whole Foods for $13.7 billion in 2017, its biggest purchase on record.

Amazon debuted its Fresh grocery chain in 2020, with an eye toward mass-market shoppers. The rollout has been turbulent since its early days.

The company opened a flurry of Fresh locations by 2022, but the expansion plans ran into CEO Andy Jassy’s widespread cost-cutting efforts as the company reckoned with the impact of rising interest rates and soaring inflation. In 2023, Amazon announced it would shut some Fresh stores and halt further openings temporarily as it evaluated how to make the chain stand out for shoppers.

While it’s closing Fresh stores, Amazon continues to “innovate and invest in making grocery shopping easier, faster, and more affordable,” Buch said. The company still maintains 500 Whole Foods locations and has opened mini “daily shop” Whole Foods stores in New York City.

On Wednesday, Amazon also launched a new “price-conscious” grocery brand that will be offered online and in its physical stores. And last month, Amazon expanded same-day delivery of fresh foods to more pockets of the U.S.

Jassy and other company executives have touted the success of sales of “everyday essentials” within its online grocery business, which refers to items such as canned goods, paper towels, dish soap and snacks. Jassy told investors at the company’s annual shareholder meeting in May that he remains “bullish” on grocery, calling it a “significant business” for Amazon.

WATCH: Amazon grocery could be a trojan horse to more revenue

Amazon's grocery could be a trojan horse to move revenue higher, says Evercore ISI's Mark Mahaney

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Quantum stocks Rigetti Computing and D-Wave surged double-digits this week. Here’s what’s driving the big move

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Quantum stocks Rigetti Computing and D-Wave surged double-digits this week. Here's what's driving the big move

Inside Google’s quantum computing lab in Santa Barbara, California.

CNBC

Quantum computing stocks are wrapping up a big week of double-digit gains.

Shares of Rigetti Computing, D-Wave Quantum and Quantum Computing have surged more than 20%. Rigetti and D-Wave Quantum have more than doubled and tripled, respectively, since the start of the year. Arqit Quantum skyrocketed more than 32% this week.

The jump in shares followed a wave of positive news in the quantum space.

Rigetti said it had purchase orders totalling $5.7 million for two of its 9-qubit Novera quantum computing systems. The owner of drugmaker Novo Nordisk and the Danish government also invested 300 million euros in a quantum venture fund.

In a blog post earlier this week, Nvidia also highlighted accelerated computing, which it argues can make “quantum computing breakthroughs of today and tomorrow possible.”

Investors have piled into quantum computing technology this year, as tech giants Microsoft, Nvidia and Amazon have embraced the technology with a wave of new chip announcements, multi-million dollar investments and research plans.

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Quantum computing is the most radical technology in history: Bank of America's Haim Israel

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How to get Sora app invite codes for OpenAI’s viral AI video creator

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How to get Sora app invite codes for OpenAI's viral AI video creator

Cfoto | Future Publishing | Getty Images

OpenAI’s new artificial intelligence video app Sora has already grabbed the top spot in Apple‘s App Store as its number one free app, despite being invite-only.

Sora, which was launched on Tuesday, allows users to create short-form AI videos and share them in a feed. The app is available to iPhone users but requires an invite code to access.

Here’s how to snag a Sora app invite code:

  • First, download the app from the iOS App Store. Note that Sora requires iOS 18.0 or later to be downloaded.
  • Login using your OpenAI account.
  • Click “Notify me when access opens.”

A screen will then appear asking for an access code.

Currently, OpenAI has said that it is prioritizing paying ChatGPT Pro users for Sora access. The app is only available in the U.S. and Canada, but is expected to roll out to additional countries soon, the company said.

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If you do not know someone who can provide an access code, several people are sharing invite codes on the official OpenAI Discord server, as well as on X and Reddit threads.

Once you input your access, you will be able to start generating AI videos using text or images. Users are also able to cameo as characters in their videos as well as “remix” other posts.

The app is powered by the new Sora 2.0 model, an updated version of the original Sora model from last year. The video generation model is “physically accurate, realistic, and more controllable” than prior systems, the company said in a blog post.

OpenAI's Sora 2 sparks AI 'slop' backlash

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