Tempus AI Stock Plummets 62.6% in Trading Volume Ranking 62nd Amid Short Seller Report

On May 29, 2025, Tempus AI (TEM) saw a trading volume of $10.54 billion, a 62.6% decrease from the previous day, ranking 62nd in the day's stock market activity. Tempus AI (TEM) rose by 2.31%.

Tempus AI's stock price experienced a significant decline following the release of a critical short report by Spruce Point Capital Management. The report highlighted concerns about the company's management history, AI capabilities, and financial reporting practices, alleging a potential downside risk of 50-60%.

The report specifically targeted Tempus AI's founder, Eric Lefkofsky, citing his past ventures such as Groupon and Echo Global Logistics, which failed to meet expectations. The short-seller also questioned Tempus AI's AI capabilities, noting that despite rebranding to capitalize on AI hype, the company generated only $12.4 million from AI applications in 2024, which is 2% of its total revenue.

Additionally, the report raised concerns about Tempus AI's accounting practices, including a joint venture with SoftBank and the treatment of a $250 million Google Cloud debt. These practices were alleged to inflate the company's adjusted EBITDA. The report also questioned recent deals with AstraZeneca and Pathos AI, suggesting they were more about financial engineering than genuine business expansion.

Despite the sharp decline in stock price, some analysts maintain an overweight rating for Tempus AI, with a consensus price target near $65, indicating potential upside. The company also has support from influential investors like Cathie Wood. Tempus AI dismissed the report, emphasizing its strong financial performance and growth prospects in AI healthcare.