Supermicro Stock Plummets Amid Concerns

This is a news story, published by Yahoo Finance, that relates primarily to Supermicro Computer news.

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Super Micro Computer

The Motley Fool

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Super Micro Computer's Sales Growth Is Incredible, but This Could Be a Problem for the Stock

Summary

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Supermicro Computer (NASDAQ: SMCI ) has been a hot buy this year , but lately, the stock has been nosediving.

Last quarter , Supermicro 's gross margin, which was already low at 17% a year ago , fell even lower to just 11% .

That means that for every $1 Supermicro generates in revenue, it's incurring $ 0.89 in costs.

Supermicro is coming off another strong period of growth but there's a more concerning number that investors may want to pay attention to: its gross profit.

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