Good Morning. This is the Investor Lookout with the daily digest to make you a smarter investor. (Keep an eye on the Lookout Watch to see how we’re doing!)

Here’s what we got today:

• 🖥️ Super Micro Shares Plunge As Ernst & Young Resigns As Auditor

• 🚗 Volkswagen Profits Crash In Third Quarter As It Prepares Cost-Cutting Plan

Super Micro Shares Plunge As Ernst & Young Resigns As Auditor

Ernst & Young's system diagnostic on Super Micro just came back fatal. Super Micro Computer's ($SMCI) stock fell 30% on Wednesday as it announced the resignation of its auditor, Ernst & Young. Since July, the accounting firm cited concerns about governance, transparency, and internal controls over financial reporting. The AI server maker is now under intense scrutiny after EY's strongly worded resignation letter. The accounting giant cited inability to rely on management's representations and unwillingness to be associated with the company's financial statements. 

• Super Micro reached an all-time high of $67 billion, up from $4.4 billion in 2023

• The company has been under DOJ investigation since September

Volkswagen Profits Crash In Third Quarter As It Prepares Cost-Cutting Plan

VW's ($VOW.DE) latest earnings report shows the automaker is hitting some serious speed bumps. The German giant reported a 42% drop in operating profit for Q3, falling to $3.1 billion, while its operating margin fell to 3.6%, the lowest since COVID-19. The company is considering closing three plants in Germany for the first time amid increased competition in the Chinese market, the biggest in the world, as part of an 11 billion cost-cutting plan. Vehicle sales are down 8.3% in Q3 compared to the previous year.

• VW canceled a decades-long employment protection agreement as it is in danger of a workers' strike if negotiations fail with union leaders for a new contract.

• Chinese automakers are forcing an entrance to the European market, which would further exacerbate VW's challenges.

Markets

ADP jobs report shows 233,000 gain in private-sector hiring - much stronger than expected. U.S. businesses added 233,000 new jobs in October, the highest in 14 months, as reported by paycheck company ADP. [Read]

China’s property market is expected to stabilize in 2025 — but stay subdued for years. Analysts predict market stabilization by late 2025. The recovery comes after Xi Jinping's administration introduced stimulus measures to halt market decline. [Read]

Goldman Institute calls for ‘data center diplomacy’ as U.S. competes in global AI race. Goldman Sachs Institute highlights the strategic importance of data centers in the global AI competition, with Gulf states positioned as crucial partners for both the U.S. and China. [Read]

Business

China’s Xiaomi delivers 20,000 EVs in October, just months after launching its first car. The Chinese tech giant delivered 20,000 SU7 EVs in October, reaching 75,000 total deliveries since March. Its premium SU7 Ultra car received 3,600 preorders within minutes. [Read]

Google’s new CFO makes earnings call debut, says company can ‘push a little further’ on cost cuts. In her first earnings call as Alphabet's ($GOOGL) CFO, Anat Ashkenazi emphasized the need for additional cost efficiencies while maintaining aggressive AI investments. [Read]

Global gold demand tops $100 billion for first time ever in third quarter. The World Gold Council reports unprecedented gold demand driven by Western investors responding to lower interest rates and geopolitical risks. [Read]

Europe will pay a 'big price,' Trump warns on tariffs. Investing.com

Mortgage rates rise to highest level since July due to these 3 reasons. MarketWatch

Apple Intelligence is here. Early users are underwhelmed. Quartz

The business leaders that Kamala Harris could recruit for her Cabinet. BI

Visa says spending trends are stable, and this time Wall Street agrees. MarketWatch

Biogen’s stock hit by soft sales of Alzheimer’s treatment. MarketWatch

Snap shares jump 10% on profit beat, stock buyback. CNBC

Reddit shares soar 22% on earnings beat. CNBC

Elon Musk says Trump's economic plans will cause 'temporary hardship'. Quartz.

Chipotle’s new CEO maintains focus on faster service as sales fall short. MarketWatch

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.