Tempus AI rebounds, now up over 3%
ByAinvest
Thursday, May 29, 2025 9:48 am ET1min read
AI--
The report, which was published on May 28, raised serious concerns about the integrity of Tempus AI’s product, the credibility of its management, and its financial reporting practices. Spruce Point alleged that Tempus AI’s AI-driven products generate only a small fraction of its revenue, with AI-related revenue totaling $12.4 million in 2024, less than 2% of the company’s total revenue of $693.4 million [1].
The report also cast doubt on the track record of CEO Eric Lefkofsky, citing his prior associations with firms that faced accounting controversies and bankruptcies. Additionally, it raised red flags about possible circular sales practices, questionable partnerships, and related-party dealings [2].
In response to the report, Tempus AI stated that it does not intend to respond to a report that is riddled with hypotheticals and inaccuracies. The company remains focused on delivering shareholder value and helping patients live longer and healthier lives [3].
The stock’s rebound comes as investors reacted to the report by selling off shares, reflecting the market’s concern over the allegations made by Spruce Point. However, the company’s stock price has since rebounded, suggesting that investors may be reassessing their views on Tempus AI following the initial market reaction [4].
References:
[1] https://www.investing.com/news/stock-market-news/tempus-ai-stock-sinks-following-spruce-point-short-report-4068011
[2] https://ih.advfn.com/market-news/article/10818/tempus-ai-shares-drop-following-critical-short-seller-report-from-spruce-point
[3] https://sherwood.news/markets/tempus-ai-hammered-by-short-sellers-report/
[4] https://www.tradingview.com/news/reuters.com,2025-05-29:newsml_GNXjbFDW:0-wolf-popper-llp-announces-investigation-on-behalf-of-tempus-ai-inc-investors/
TEM--
Tempus AI rebounds, now up over 3%
Tempus AI (NASDAQ: TEM) saw its stock price rebound by over 3% on May 29, 2025, following a critical short-seller report from Spruce Point Capital. The stock, which had fallen by 4% earlier in the week after the report was released, closed the day with a gain of 3.2%, reaching $56.82 per share.The report, which was published on May 28, raised serious concerns about the integrity of Tempus AI’s product, the credibility of its management, and its financial reporting practices. Spruce Point alleged that Tempus AI’s AI-driven products generate only a small fraction of its revenue, with AI-related revenue totaling $12.4 million in 2024, less than 2% of the company’s total revenue of $693.4 million [1].
The report also cast doubt on the track record of CEO Eric Lefkofsky, citing his prior associations with firms that faced accounting controversies and bankruptcies. Additionally, it raised red flags about possible circular sales practices, questionable partnerships, and related-party dealings [2].
In response to the report, Tempus AI stated that it does not intend to respond to a report that is riddled with hypotheticals and inaccuracies. The company remains focused on delivering shareholder value and helping patients live longer and healthier lives [3].
The stock’s rebound comes as investors reacted to the report by selling off shares, reflecting the market’s concern over the allegations made by Spruce Point. However, the company’s stock price has since rebounded, suggesting that investors may be reassessing their views on Tempus AI following the initial market reaction [4].
References:
[1] https://www.investing.com/news/stock-market-news/tempus-ai-stock-sinks-following-spruce-point-short-report-4068011
[2] https://ih.advfn.com/market-news/article/10818/tempus-ai-shares-drop-following-critical-short-seller-report-from-spruce-point
[3] https://sherwood.news/markets/tempus-ai-hammered-by-short-sellers-report/
[4] https://www.tradingview.com/news/reuters.com,2025-05-29:newsml_GNXjbFDW:0-wolf-popper-llp-announces-investigation-on-behalf-of-tempus-ai-inc-investors/
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