Tempus AI's Tempestuous Ride: Cramer's Warning and the Numbers Behind the Storm

In May 2025, Jim Cramer’s blunt warning about tempus ai (TEM) sent ripples through the market: “Diagnostics with no dough? I’m out.” The CEO of Mad Money wasn’t mincing words. Behind his caution lies a complex mix of financial red flags, insider skepticism, and regulatory uncertainty. Let’s dissect why even a hot biotech stock like TEM might be a risky bet right now.

The Financial Reality Check

Cramer’s warning hinges on Tempus’s precarious financials. Despite a 53% surge in stock price over the past year, the company is burning cash. While exact figures aren’t public, the context of Cramer’s May 2025 remarks—tied to an upcoming earnings report—hints at losses that could deter investors. For context, would clarify whether the company is scaling profitably or just selling hope.

Ask Aime: "Is Tempus AI a risky biotech bet after Jim Cramer's warning?"

Insider Selling: A Silent Sell-Off

The data is stark: 215 insider sales versus zero purchases in the past six months. Notably, CEO Eric Lefkofsky unloaded 6.3 million shares worth $361 million. Such massive selling isn’t just a coincidence. Insiders often know what’s coming. When the top executive cashes out, it raises serious questions about confidence in TEM’s near-term prospects.

Analyst Sentiment: A Mixed Bag

Analysts aren’t unanimous. While Morgan Stanley and Needham have bullish outlooks—Morgan Stanley even set a $60 price target (as of late 2024)—the median target remains at $60. Compare this to TEM’s May 2025 price of around $55. The gap suggests analysts are hedging their bets. Cramer’s warning amplifies this caution, focusing on qualitative risks like market volatility and execution challenges.

Regulatory Risks: Lobbying in a Sensitive Space

Tempus’s Q1 2025 lobbying spend of $60,000 on “Healthcare AI” issues isn’t trivial. This signals potential regulatory hurdles, especially in an industry where data privacy and clinical validation are under scrutiny. Investors should ask: Is the company navigating regulations smoothly, or is it scrambling to influence policy?

The Bigger Picture: A Volatile Market’s Perfect Storm

Cramer’s advice—“avoid stocks losing money in a dicey environment”—resonates in 2025’s choppy markets. The S&P 500’s swings and rising interest rates mean investors are favoring stability over speculative plays. For TEM, this means its valuation is under pressure unless it can prove it can turn losses into profits—and fast.

Conclusion: Proceed With Extreme Caution

The numbers tell a cautionary tale. 6.3 million shares sold by insiders, $60 million in lobbying, and a stock price hovering near analyst targets suggest Tempus AI is a gamble. Even if the company’s AI diagnostics have promise, the financial and regulatory risks are too high to ignore.

Cramer’s warning isn’t just about today—it’s about whether TEM can survive in a market that’s increasingly demanding profitability. Until there’s proof of sustainable growth, this stock is better left to speculators. For the rest of us, the message is clear: “No dough, no go.”

Roaring Kitty’s analysis combines market context, insider behavior, and fundamental data to cut through the noise—because in investing, as in life, the devil is in the details.