r/wallstreetbets
Supermicro Announces Proposed $7.0 Billion of Equity and Equity-linked Financing Transactions To Fund AI Orders
SMCI announces $7B equity financing for AI orders, but author highlights shady accounting, executive arrests, and dilution.
- SMCI has a history of shady accounting and nearly faced delisting for failing to file its 10-K.
- Three executives were arrested for smuggling Nvidia chips.
- The company is diluting shares by raising $7 billion under the guise of AI demand.
SMCI is known for shady accounting and despite almost getting delisted for not filing 10-k last year, has said they won’t change any accounting practices.
Then, 3 executives were arrested for smuggling Nvidia chips.
Today, they copied the Google playbook and diluted shares, using AI as an excuse. Somehow, bulls will still find this scam company doing what Google is doing as bullish
They're basically the MSTR of the AI industry, 99% of their effort is focused on book cooking rather than generating actual revenue
book cooking is the future
Pretty much, we'll soon witness the biggest book cooking in history when SPCX's does their very first earnings report
Earnings report? Fam their ipo is already max regardis regardum
$70 billion in profit from IPO chief
If these companies see that GOOG isn't punished for diluting what is to stop other's from diluting for "AI"?
It's free retail liquidity.
Google (Alphabet) dropped 10-12% after the sale announcement.
And I'm sure SMCI will do worse, but a 10%(so far) temporary drop sounds like price for Google to raise 80b.
Golden rule: Never invest in any of these companies with Super, Mega, Big in their names. They're all trash and go down in flames.
Its the opposite for stocks with applied in the name 📈
My calls are cooked
Will they use AI to mine Bitcoin? This has come full circle.
Lmao, when you think it can’t get worse 😂
Can someone explain to me how they can say 36 billion in recent orders in the last few weeks.. but their last Quarter was only 11B?
Are they saying they expect to 3-4x their earnings? Because If so that seems bigger than the dilution surely?
I know this is WSB but kinda... sounds like next earnings it will cover back and then some.
They are right.
They are doing this raise to get cash now because it's going to be more expensive later. Interest rates are going up. Borrowing is going to get more expensive. The cash grab is now.
Jensen was in Taiwan. He almost certainly them to do this because he knows what is coming and wants one of his largest customers to have cash, but also SMCI and Nvidia have been doing business since the 90s.
SMCI has it's problems, but they are going to be making a lot of money when those orders finally ship.
Wow. Everyone is realizing this is the new pivot-to-AI money grab play. And they're not gonna let Elon get there first.
Kinda seems like everyone involved in AI is doing or thinking about doing an offering. Puts on all the ones that haven’t done so yet I guess.