Bloomberg Intelligence
Super Micro Auditor Resigns, Eli Lilly Cuts Outlook
Oct 30, 2024
Woo Jin Ho, a Senior Technology Analyst, discusses the shocking resignation of Super Micro's auditor and its impact on the AI market. Alison Williams analyzes UBS's strong performance compared to European banks, showcasing its robust equities business. Sam Fazeli dissects Eli Lilly's disappointing earnings and the challenges they face with obesity drug demand. Mandeep Singh highlights Google's impressive performance in a competitive cloud market. Laura Davison shares insights on Puerto Rico's increasing political significance in U.S. elections, including recent controversies and voter integrity issues.
32:23
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Quick takeaways
- Super Micro Computer is facing a crisis after its auditor resigned, raising serious concerns about corporate governance and accounting practices.
- Despite UBS's strong quarterly performance, ongoing regulatory pressures and investor scrutiny on capital requirements pose significant challenges ahead.
Deep dives
Super Micro Computer's Turmoil
Super Micro Computer faces significant turmoil after its auditor, Ernst & Young, resigned, citing integrity issues related to the management team. This marks the second auditor to leave within 18 months, raising red flags about the company's corporate governance and accounting practices. The situation is compounded by a Department of Justice probe into potential accounting violations, suggesting a return to aggressive accounting practices that previously led to the company's delisting. With stock prices plummeting from a peak of $180 to around $34, investor confidence is wavering, pushing calls for leadership changes at both the board and executive levels.
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