Tempus AI's 2.81 Stock Rise on Q2 Earnings and 73rd Ranked 1.08 Billion Volume Amid Legal Scrutiny and Profitability Struggles

Tempus AI (TEM) rose 2.81% on August 14, trading with a volume of $1.08 billion, ranking 73rd in market activity. Legal scrutiny remains a key focus as multiple firms investigate potential securities violations, including allegations of misleading financial disclosures and operational weaknesses. A class-action lawsuit filed in June 2025 highlighted concerns over inflated contract valuations, aggressive billing practices at acquired subsidiary Ambry, and questionable partnerships. These claims, coupled with a critical report from Spruce Point Capital, contributed to a 19.23% drop in the stock price in late May 2025.

Recent Q2 earnings reported on August 8 showed improved revenue growth and a raised 2025 revenue forecast to $1.26 billion, driven by genomics and data partnerships. Despite profitability remaining elusive, the results aligned with analyst expectations. Morgan Stanley upgraded its price target to $68, reflecting cautious optimism. However, ongoing legal pressures persist, with several law firms urging investors to pursue claims related to alleged mismanagement and financial inaccuracies.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to 2025 yielded a 0.98% average one-day return, with a cumulative gain of 31.52% over 365 days. This suggests moderate short-term momentum but underscores risks tied to market volatility and timing.