Super Micro Computer (NASDAQ: SMCI) stock has been in free fall for the last six months. A myriad of issues related to its accounting practices have spooked investors. After the company announced it would have to delay the release of its 10-K annual report for its fiscal 2024 ended June 30, it also faced the possibility of its stock being delisted from the Nasdaq Stock Exchange.

It has now hit the deadline for a Nasdaq delisting, but today it is planning a filing that could result in the company avoiding being delisted, reports Barron's. That has led to a spike in shares today, to the tune of 17.5% as of 12:30 p.m. ET. Though the stock is still lower by about 75% in the last six months.

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Supermicro's server business impacts

If the company does indeed manage to avoid being delisted from the major exchange, it is certainly good news for shareholders. So it makes sense that investors sent shares soaring today. But that isn't the end of the company's problems.

The 10-K filing delay followed a short-seller report questioning Supermicro's accounting practices. Since then the company's auditor resigned, and it said it will also be forced to delay its fiscal 2025 first-quarter report while searching for a new auditing firm.

Supermicro management did release an update on Nov. 5 saying preliminary results for its September quarter would be below expectations. But it also added that a three-month independent counsel investigation found "no evidence of fraud or misconduct on the part of management or the board of directors."

But investors have to be concerned about the business ramifications as well. Supermicro could be losing orders as it struggles to right its ship. And today's bounce is likely from a short squeeze as short sellers cover positions and take profits. Short sellers held about 19% of the stock float as of the end of October, according to MarketWatch.

Those interested in owning the stock should probably wait for better official news. Today's bounce isn't a sign that the business itself is back in growth mode.

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