Shares of Tempus AI (NASDAQ: TEM) plummeted nearly 20% after a scathing short report from Spruce Point raised alarm bells about the company’s fundamentals. Spruce Point's report questioned the credibility of Tempus AI’s management, the integrity of its AI-related products, and its financial reporting. Tempus AI (TEM) At the heart of the report is a bold accusation: Tempus AI’s branding is disconnected from its actual financial performance. In 2024, AI-related revenue was reported at just $12.4 million—less than 2% of the company’s total revenue of $693.4 million. The previous year, AI revenue was only $5.5 million. I’m skeptical—regardless of the short report. There are several red flags that make TEM stock unattractive to me at current levels: Lack of profitability: Tempus AI’s net income
TEM Rebounds on "Xm" News: Can Stock Return to $70?
Tempus AI surged over 8% intraday against the market trend after the company launched Xm, a test designed to monitor immunotherapy responses in patients with advanced cancer. TEM's stock price fell 20% last week after being targeted by a short report from Spruce Point. The report raised serious concerns about the integrity of Tempus AI's products, the credibility of its management team, and its financial reporting practices. ------- How do you view the rally after the short report? Did you buy the dip last week? Will you sell to take profit now or hold?
+ Follow
+1