• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Tempus AI stock wasn’t worth owning even without the short report: find out why

by May 29, 2025
by May 29, 2025

Tempus AI Inc (NASDAQ: TEM) came crumbling down on Wednesday after Spruce Point announced a short position in the Chicago headquartered health technology company.

Spruce Point cited several reasons, including account irregularities and eroding ties with key clients like AstraZeneca, for its bet against the Nasdaq listed firm.

Tempus AI shares have been on a tear lately, which is why, despite today’s decline, they’re up more than 40% versus their year-to-date low in early April.

Why is Spruce Point short Tempus AI stock in 2025?

According to Spruce Point, the health-tech firm’s top executives, including board members, have a history of creating “disruptive technology companies” that first make bold claims but ultimately fail at delivering on them.

However, they cash out early and make millions, leaving shareholders with lackluster returns, the investment firm’s short report added.

Additionally, Tempus AI management is misleading investors about their use of artificial intelligence.

The company, based out of Chicago, Illinois, rebranded from “Tempus Labs” to “Tempus AI” last year to capitalise on the AI hype.

Still, artificial intelligence contributed only 2.0% to its overall revenue in 2024, indicating TEM’s ability to tap into AI is grossly exaggerated, the short seller argued.

TEM shares look overvalued at current levels

Investors should be cautious with Tempus AI stock this year, even if many of the recent allegations against the company are ultimately unfounded.

The primary concern lies in valuation. Since the rally that began on April 8, TEM shares have surged beyond what current fundamentals justify.

The company has yet to report a profit or generate positive net cash flow, making its current pricing appear stretched relative to its financial performance.

The Nasdaq listed firm lost $1.58 a share on $693.4 million in revenue last year. In comparison, analysts had called for $696.3 million instead.

Wall Street remains bullish on Tempus AI Inc

Despite Spruce Point’s short report, Wall Street remains reasonably bullish on Tempus AI stock for the remainder of this year.

The consensus rating on the artificial intelligence-enabled health firm sits at “overweight” with the mean target of nearly $65, indicating potential upside of more than 20% from current levels.

Part of the reason could be the company’s Q1 earnings. In the first quarter, TEM generated a little over $255 million in revenue and lost 24 cents on a per-share basis.

Consensus was $248 million and 26 cents a share, respectively.

What’s also worth mentioning here is that influential investor Cathie Wood is long this AI stock as well.

In March, her investment management company loaded up on 400,000 shares of Tempus AI across two of its flagship ETFs.

The post Tempus AI stock wasn’t worth owning even without the short report: find out why appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Marvell stock price risky pattern points to a post-earnings MRVL crash
next post
Trump dismisses ‘chickening out’ criticism on Tariff flip-flop

Related Posts

Asian markets open: Nikkei hits another record high,...

October 7, 2025

Top reasons why the Topix and Nikkei 225...

October 7, 2025

Goldman Sachs boosts 2026 gold price forecast to...

October 7, 2025

Beijing intensifies oil stockpiling amid global supply and...

October 7, 2025

Trump’s new 25% truck tariff targets imports from...

October 7, 2025

CAC 40 Index outlook: Understanding the decline and...

October 7, 2025

DAX Index analysis: Why German stocks are rising...

October 7, 2025

Europe markets open: Stoxx 600 flat, CAC 40...

October 7, 2025

LG India’s $1.3B share sale highlights record IPO...

October 7, 2025

Trilogy Metals shares soar over 200% as White...

October 7, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • The OECD’s Warning to America: Economic Growth Is Slipping

    October 7, 2025
  • Semiconductor Giants with Tech-Industrial Ambitions

    October 7, 2025
  • Will Bitcoin Strengthen or Weaken US Dollar Dominance?

    October 7, 2025
  • Asian markets open: Nikkei hits another record high, Sensex up 140 pts

    October 7, 2025
  • Top reasons why the Topix and Nikkei 225 indices are soaring

    October 7, 2025
  • Goldman Sachs boosts 2026 gold price forecast to $4,900 amid strong demand

    October 7, 2025

Editors’ Picks

  • 1

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 2

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025
  • 5

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Pop Mart reports 188% profit surge, plans aggressive global expansion

    March 26, 2025

Categories

  • Economy (2,804)
  • Editor's Pick (280)
  • Investing (185)
  • Stock (1,914)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Westpac share price slipped after earnings: time...

May 5, 2025

 Rheinmetall share price forecast: buy, sell, or...

July 15, 2025

Top DAX Index shares to watch: Commerzbank,...

May 2, 2025