What’s up with the Super Micro Computer?

Sometimes top performers fall short of expectations. But that doesn’t take away from the fact that they are still considered one of the best.

The recent Olympics are a perfect example of this.

In the final week of the Summer Olympics in Paris, gymnast Simone Biles was scheduled to compete in the balance beam final. The weight of the world was on her shoulders, everyone waiting for her to get another gold medal for the United States (she had already won gold in every event she competed in, including the team, individual and vault finals).

While her beam routine started well, halfway through she fell.

Any fall from the balance beam takes a full point off a gymnast’s final score, which includes execution and level of difficulty. She finished tied for fifth overall with teammate Suni Lee and failed to make the podium, shocking the world.

While it was disappointing that Simone didn’t win a medal for the balance beam, there was something much better to celebrate in the big picture.

She left Paris with three gold medals and a silver medal for the floor exercise final. These medals made her the most decorated gymnast in history, with a total of 11 Olympic medals and 30 World Championship medals. This is a amazing achievement.

Super Micro Computer, Inc. (SMCI) experienced similar scrutiny when its earnings came out earlier this month.

Prior to its latest earnings report, the company was on a roll. It was one of the clear market leaders and delivered incredible returns to investors. But in this latest edition, the company slipped.

Since then, I have received many questions in my inbox about SMCI. This question summarizes most of the questions I’ve received:

“SMCI missed earnings for the second quarter and many of the big players moved away from the stock last month. Are you confident that it is wise to continue?”

The truth is that even though SMCI posted weaker than expected quarterly results, they still were fantastic.

So, in today’s 360 SquareI’ll explain what happened with SMCI this month and why I think it’s still a great buy. Then I’ll share more about where you can find it fundamentally superior stocks such as the Super Micro Computer.