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It’s been a rocky few days for Tempus AI (NASDAQ:TEM).
After hitting a high of $91.45, the stock plummeted to a low of $55.20. All thanks to an earnings miss and news that CEO Jim Rogers sold 31,000 shares.
Key Points About This Article
- After hitting a high of $91.45, the stock plummeted to a low of $55.20. All thanks to an earnings miss and news that CEO Jim Rogers sold 31,000 shares.
- Reportedly, she and Ark Invest bought the dip, picking up 445,958 shares.
- Earnings were mixed, but we have to consider that many of the reported numbers were in line with management expectations.
- After a long two-year-plus rally, it may be time to have a portfolio checkup with an experienced financial advisor near you. Click here and find out how easy it is to find one.(Sponsored)
But as we said here, “We wouldn’t read too much into the selling. For us, it’s not a significant cause for concern because the funds could be used for personal reasons. We also have to remember that Tempus AI is moving to revolutionize healthcare with artificial intelligence.”
About two days after that note, TEM took off about $7 a share thanks to Cathie Wood.
Reportedly, she and Ark Invest bought the dip, picking up 445,958 shares. Even better, after finding strong support at $55, the oversold stock is just starting to pivot higher. In fact, from its last traded price of $64.56, we’d like to see Tempus AI initially retest $75.
Plus, we have to remember that Nancy Pelosi is bullish, picking up 50 of the TEM January 2026 $20 call options in mid-January.
The Dip is Still a Buy Opportunity
Earnings were mixed, but we have to consider that many of the reported numbers were in line with management expectations. Fourth quarter revenue of $200.7 million was up 35.8% year over year. Still, that was $2.1 million shy of expectations. Adjusted EBITDA came in at a loss $7.8 million, as compared to the $21.8 million loss booked last quarter. Its EPS loss of. 18 cents missed by three cents.
However, as management noted on January 13, it expected to post “Revenue of approximately $200 million, an increase of approximately 35% year-over-year” and “Continued trend of sequential improvement in adjusted EBITDA in the fourth quarter of 2024.”
So, the numbers were in line with management estimates.
With guidance, the company increased its 2025 revenue guidance to $1.24 billion, which would be 79% growth year over year, as noted in a company press release. It also expects to see adjusted EBITDA of $5 million for the year, which is up from $110 million in 2024.
Plus, as noted by Eric Lefkofsky, Founder and CEO of Tempus, “We believe our investments in AI have positioned us well for the future, as technologies that seemed unimaginable a few short years ago increasingly allow us to make our diagnostics intelligent, helping patients live longer and healthier lives. We remain on track to achieve our key financial milestones, with expected robust revenue growth and positive Adjusted EBITDA in 2025.”
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