Tempus AI Stock Plummets 19.23% Amidst Controversial Short Report Ranking 18th in Trading Volume

On May 28, 2025, Tempus AI (TEM) experienced a significant drop of 19.23%, with a trading volume of 27.74 billion, ranking 18th in the day's market activity.

Tempus AI's stock price decline was triggered by a short report released by Spruce Point Capital Management on Wednesday. The report highlighted several concerns, including the company's aggressive financial engineering and questionable leadership practices.

The report also raised questions about the company's joint venture and the role of AI in its revenue generation, suggesting that AI contributes only 2% to Tempus AI's total revenue. This revelation has sparked further scrutiny and skepticism among investors, contributing to the stock's decline.

Additionally, the report cited aggressive accounting practices and a history of promoting disruptive technologies without substantial evidence of their effectiveness. These factors have collectively led to a significant loss of investor confidence in Tempus AI, resulting in the sharp drop in its stock price.