Why Are These Stocks Plunging Today?

Super Micro Computer, Inc. (NASDAQ:SMCI) today reduced revenue estimates to roughly $530 million from the previous range of  $520 million-to-$580 million. The company’s bottom line has been affected by seasonal effects, as well as a slump in activity in Europe and China. Management is also expecting an increase of $2 million-to-$3 million in operating expenses due to higher costs associated with compensation and marketing expenses. As a result, earnings have been revised down to approximately $0.45 per share.

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James Dondero is very optimistic about the prospects of Super Micro Computer, Inc. (NASDAQ:SMCI), having initiated a position that amassed 489,420 shares during the second quarter. This move propelled him to the top of the list of investors we track with positions in the company. Billionaire Ken Griffin also has high hopes for this stock, having increased his investment by 16% to 231,959 shares, according to Citadel Investment Group’s latest 13F filing. Super Micro Computer’s popularity among the funds we follow was dealt a serious blow during the second quarter, as the number of funds holding a position dropped to 14, from 23 at the end of March. The value of their investments also plummeted by 37% to $50.8 million, which now represents a minor 3.6% of the company’s common stock.

The operator of the largest digital offers platform, RetailMeNot Inc (NASDAQ:SALE) is adamant shopping patterns are changing. According to a survey ordered by the company, only a small fraction of consumers believe holiday promotions are worth the wait, while 85% would rather special offers begin earlier. The company has thus concluded that consumers tend to start shopping for the holiday season as early as Labor Day. Investors are not very impressed by their latest Shoppers Trend Report, with shares dropping into the red zone during the first hour of trading. RetailMeNot’s management was quick to appease investors, stating that their special deals still offer customers sizable saving opportunities, according to their own statistical data.

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The popularity of RetailMeNot Inc (NASDAQ:SALE) among the hedge funds that we track registered a slight boost during the second quarter, with the number of funds invested in the stock having increased to 21 from 17. The overall value of their positions did however decrease by 3.7% to $197 million, which represents roughly 20% of the company’s outstanding stock. Hedge fund guru Jim Simons is a big fan of RetailMeNot, having boosted his stake by 138% during the quarter to amass 881,208 shares. Scopia Capital, run by Matt Sirovich and Jeremy Mindich, is the biggest shareholder of the stock from the funds we follow, having reported ownership of 6.69 million shares in its latest 13F filing.

Disclosure: None