Thoughts of SMCI


Just went took a long over their earnings

FY REV: 110%
Q/Q: 38%

Guide:
FY 25: 74% – 101% Rev growth
Q1 25: 183% – 230% Rev growth

Growth seems fine my issue is their margins and earnings. Margins have been decreasing for 4 straight quarter. They missed on their eps guide as well( $6.25 vs $7.62/$8.42)

Cash flow from operation has been dropping for a year, as well as net cash.

Their biggest problem to me is they insane increase in stock based compensation(almost 4x y/y), as well as their cost of sales growing faster than their revenue.

I’m not sure if this is a growth company(first time paying attention to this stock cause of its big drop recently). I’m just curious if there’s something here and the margin decreases is just a short-term thing. Also a 10-1 stock split doesn’t hurt


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