Super Micro Computers (SMCI) is down BIG. Time to BUY or a Sign of Bigger Troubles Ahead?
Super Micro Computer Inc. (SMCI) stock is down 35%, but there are reasons to consider buying, as the company's upcoming earnings call could result in meeting, beating, or missing expectations, with potential for a significant stock rally if expectations are exceeded, while downside potential is reduced if expectations are not met. Levels to watch for buying are $700, $600, and $500.
[00:00]( • Super Micro Computers (SMCI) is down ... ) Super Micro Computer Incorporated is down 18% today after the company didn't provide updates on their upcoming earnings call like they usually do.
The company confirmed their April 30th earnings conference call, but did not give any updates on what to expect.
In previous quarters, the company provided updates on revenue and sales, which influenced market expectations.
Investors are now questioning whether to buy or sell the stock, which is currently 35% off its highs.
[02:49]( • Super Micro Computers (SMCI) is down ... ) Chris discusses the possibility of buying the stock on a dip and explains three different scenarios for the upcoming earnings call.
The market has already priced in the possibility of bad news in the earnings report.
If the company misses the expectations, there may be a little more downside potential.
The stock is not expected to have a significant pullback of 20-40% based on the news.
[05:42]( • Super Micro Computers (SMCI) is down ... ) Chris discusses the potential future performance of SMCI stock and highlights the importance of meeting expectations and beating expectations.
Chris believes that if the company meets expectations, the stock could reach $1,000 and move higher.
They mention that if the company beats expectations, the stock could experience a significant increase and reach a target of $1,500.
Chris also mentions that the AI infrastructure industry, in which SMCI operates, is growing rapidly, making it unlikely for the company to perform poorly.
[08:36]( • Super Micro Computers (SMCI) is down ... ) Chris discusses the support and resistance levels for SMCI stock, mentioning that if it breaks below $700, they will add to their position.
Support and resistance levels at $800 and $900 have been broken.
The next support level is $700, which is the bottom seen in February.
Chris plans to add to their position if the stock breaks below $700, at $600 and $500.
The presence of the 200-day moving average and open interest configuration in the options market is also highlighted.
[11:30]( • Super Micro Computers (SMCI) is down ... ) The video discusses the importance of diversifying portfolios and provides insights on investing in SMCI stock.
$500 is a price to consider adding SMCI stock to your portfolio.
Analysts may issue buy recommendations on SMCI due to its potential for a 50% move.
The company's decision not to provide guidance may be a strategy to avoid creating unrealistic expectations.
The current stock price has been discounted ahead of earnings, presenting a favorable opportunity for investors.
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