Latest news with #SprucePointCapital
Globe and Mail
6 days ago
- Business
- Globe and Mail
Tempus AI Stock (TEM) Could See ‘Tesla or Nvidia-Type Inflection,' Claims Short Seller
AI (TEM) came under intense pressure after a scathing short seller report raised red flags about the company's valuation, business model, and financial transparency. The bearish hedge fund Spruce Point Capital report compared TEM stock's potential trajectory to tech names like Tesla (TSLA) and Nvidia (NVDA), warning investors of a looming 'inflection point.' Confident Investing Starts Here: Tempus AI specializes in data-driven solutions for the healthcare industry with a focus on oncology and genomics. TEM Stock Rattled by Explosive Short Seller Claims The Spruce report warns of a potential 50% to 60% long-term downside for TEM stock and a high risk of market underperformance. The firm argued that Tempus' growth story is largely driven by hype and retail investor enthusiasm, fueled by the company's positioning as an exciting AI-driven tech disruptor. However, Spruce Point cautioned investors to look past the buzz, pointing instead to concerns over aggressive accounting practices, financial engineering, related-party transactions, and overall earnings quality. The report also criticized the company's billing practices, highlighting an aggressive use of billing code 81479, known for minimal oversight and a higher risk of misuse. According to the report, this approach could artificially boost revenue, potentially prioritizing financial gains over patient care. Additionally, the report raised concerns about Tempus AI's leadership, pointing to CEO Eric Lefkofsky's past involvement with companies that faced financial scandals, including bankruptcies and restatements. Following these claims, TEM stock crashed over 19% on Wednesday. Still, despite the sharp drop, the stock remains up 58% year-to-date. Tempus Rejects Short-Seller Claims Tempus AI dismissed the short-seller allegations, calling the report 'riddled with hypotheticals and inaccuracies' and failing to reflect the company's solid track record of financial performance and growth. Is Tempus a Good Stock to Buy? There's no denying the risks with Tempus AI. But Spruce Point's report doesn't introduce any new red flags; it simply amplifies existing concerns. On TipRanks, TEM stock has received a Moderate Buy rating based on six Buy and three Hold recommendations. The Tempus AI share price forecast is $66.25, which implies an upside of 25% from the current level. See more TEM analyst ratings
Yahoo
31-05-2025
- Business
- Yahoo
Tempus AI hits back at scathing short report
Tempus AI hits back at scathing short report originally appeared on TheStreet. On May 28, Tempus AI () stock plunged as the market reacted to a damning report from short seller Spruce Point Capital. One day later, the company responded to the accusations against it. A company at the intersection of healthcare and artificial intelligence (AI), Tempus began trading on the Nasdaq in June 2024, a year that didn't see too many high-profile initial public offerings (IPOs). For that reason, Tempus stood out, and investors were hungry for new AI stocks to buy. 💵💰💰💵 While trading has been fairly volatile, TEM stock has mostly risen and is currently up 35% for the year. Since 2025 began, its performance has been quite strong, with year-to-date (YTD) gains of almost 60%. The damning short report from Spruce Point Capital pushed shares down this week, although TEM stock has since recovered. Tempus took the opportunity to respond to short sellers' claims and offer its own take on the allegations. Since its founding in 2009, Spruce Point Capital has released over 100 forensic short reports, laying out cases against companies across various industries. In April 2025, it revealed short positions in travel tech company Clear Secure and popular beverage producer Monster recently, though, it published a detailed short report that revealed a bet against Tempus stock. In it, the short-seller estimated that TEM stock posed a '50%-60% potential long-term downside and market underperformance risk' for investors, primarily due to concerns regarding its leadership and AI capabilities. For context, Tempus uses AI to improve precision medicine solutions, as well as drug discovery and diagnostics. Its operating system is reported to analyze medical information and make it accessible for patients, as well as doctors and scientific researchers. However, Spruce Point's researchers make it clear in the report that they harbor grave concerns about the AI hype surrounding TEM stock, suggesting that it may be significantly overblown. 'Our concerns about the Company's AI capabilities deepened after we evaluated split-second product demonstrations from promotional videos and screenshots from the Company's website,' the report states. 'Apparently, Tempus has not properly figured out how to leverage AI to cross reference and check even basic facts such as patient age and the sequencing order of samples and deliveries.' The short seller also discusses Tempus founder and CEO Eric Lefkofsky, highlighting comparisons he has drawn to his company and market leaders such as Tesla and Nvidia. 'He suggests that Tempus is likely to reach a similar inflection point, and that vast upside is around the corner. However, 10 years since being founded in 2015, there is no evidence that Tempus has generated a profit or net positive cash flow,' Spruce Point notes. More AI News: OpenAI teams up with legendary Apple exec Major AI CEO sounds alarm on jobless 'bloodbath' in near-term Salesforce makes a big bet on booming tech market The report raises the point that after a decade of operation, both Tesla and Nvidia had posted $2 billion in revenue and achieved at least one cash flow positive year. It notes that in 2024, only $12.4 million, roughly 2% of Tempus's yearly revenue, came from AI applications. The underlying theme of the Spruce Point short report seems to be that it believes Tempus's AI hype is overblown and poses a massive risk for investors. For that reason, TEM stock earns a Strong Sell Opinion from the all companies respond after being targeted by a short seller, but on May 29, Tempus issued a statement on X, addressing the report. The company described Spruce Point's claims as inaccurate and misleading, encouraging investors to do their own research. 'We do not intend to respond through the media to a report that is riddled with inaccuracies, conjecture, and ill-informed hypotheticals,' the health care company stated. 'It also fails to address Tempus' history of strong financial performance and impressive growth.' Tempus also took its argument a step further, claiming that the last five stocks targeted by Spruce Point are up 'on average, over 20% in the past 4 months.' The company added that it stands by its results and remains committed to helping health care professionals leverage AI for the benefit of AI hits back at scathing short report first appeared on TheStreet on May 31, 2025 This story was originally reported by TheStreet on May 31, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-05-2025
- Business
- Yahoo
Tempus AI hits back at scathing short report
Tempus AI hits back at scathing short report originally appeared on TheStreet. On May 28, Tempus AI () stock plunged as the market reacted to a damning report from short seller Spruce Point Capital. One day later, the company responded to the accusations against it. A company at the intersection of healthcare and artificial intelligence (AI), Tempus began trading on the Nasdaq in June 2024, a year that didn't see too many high-profile initial public offerings (IPOs). For that reason, Tempus stood out, and investors were hungry for new AI stocks to buy. 💵💰💰💵 While trading has been fairly volatile, TEM stock has mostly risen and is currently up 35% for the year. Since 2025 began, its performance has been quite strong, with year-to-date (YTD) gains of almost 60%. The damning short report from Spruce Point Capital pushed shares down this week, although TEM stock has since recovered. Tempus took the opportunity to respond to short sellers' claims and offer its own take on the allegations. Since its founding in 2009, Spruce Point Capital has released over 100 forensic short reports, laying out cases against companies across various industries. In April 2025, it revealed short positions in travel tech company Clear Secure and popular beverage producer Monster recently, though, it published a detailed short report that revealed a bet against Tempus stock. In it, the short-seller estimated that TEM stock posed a '50%-60% potential long-term downside and market underperformance risk' for investors, primarily due to concerns regarding its leadership and AI capabilities. For context, Tempus uses AI to improve precision medicine solutions, as well as drug discovery and diagnostics. Its operating system is reported to analyze medical information and make it accessible for patients, as well as doctors and scientific researchers. However, Spruce Point's researchers make it clear in the report that they harbor grave concerns about the AI hype surrounding TEM stock, suggesting that it may be significantly overblown. 'Our concerns about the Company's AI capabilities deepened after we evaluated split-second product demonstrations from promotional videos and screenshots from the Company's website,' the report states. 'Apparently, Tempus has not properly figured out how to leverage AI to cross reference and check even basic facts such as patient age and the sequencing order of samples and deliveries.' The short seller also discusses Tempus founder and CEO Eric Lefkofsky, highlighting comparisons he has drawn to his company and market leaders such as Tesla and Nvidia. 'He suggests that Tempus is likely to reach a similar inflection point, and that vast upside is around the corner. However, 10 years since being founded in 2015, there is no evidence that Tempus has generated a profit or net positive cash flow,' Spruce Point notes. More AI News: OpenAI teams up with legendary Apple exec Major AI CEO sounds alarm on jobless 'bloodbath' in near-term Salesforce makes a big bet on booming tech market The report raises the point that after a decade of operation, both Tesla and Nvidia had posted $2 billion in revenue and achieved at least one cash flow positive year. It notes that in 2024, only $12.4 million, roughly 2% of Tempus's yearly revenue, came from AI applications. The underlying theme of the Spruce Point short report seems to be that it believes Tempus's AI hype is overblown and poses a massive risk for investors. For that reason, TEM stock earns a Strong Sell Opinion from the all companies respond after being targeted by a short seller, but on May 29, Tempus issued a statement on X, addressing the report. The company described Spruce Point's claims as inaccurate and misleading, encouraging investors to do their own research. 'We do not intend to respond through the media to a report that is riddled with inaccuracies, conjecture, and ill-informed hypotheticals,' the health care company stated. 'It also fails to address Tempus' history of strong financial performance and impressive growth.' Tempus also took its argument a step further, claiming that the last five stocks targeted by Spruce Point are up 'on average, over 20% in the past 4 months.' The company added that it stands by its results and remains committed to helping health care professionals leverage AI for the benefit of AI hits back at scathing short report first appeared on TheStreet on May 31, 2025 This story was originally reported by TheStreet on May 31, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
31-05-2025
- Business
- Miami Herald
Tempus AI hits back at scathing short report
On May 28, Tempus AI (TEM) stock plunged as the market reacted to a damning report from short seller Spruce Point Capital. One day later, the company responded to the accusations against it. A company at the intersection of healthcare and artificial intelligence (AI), Tempus began trading on the Nasdaq in June 2024, a year that didn't see too many high-profile initial public offerings (IPOs). For that reason, Tempus stood out, and investors were hungry for new AI stocks to buy. Don't miss the move: Subscribe to TheStreet's free daily newsletter While trading has been fairly volatile, TEM stock has mostly risen and is currently up 35% for the year. Since 2025 began, its performance has been quite strong, with year-to-date (YTD) gains of almost 60%. The damning short report from Spruce Point Capital pushed shares down this week, although TEM stock has since recovered. Tempus took the opportunity to respond to short sellers' claims and offer its own take on the allegations. Since its founding in 2009, Spruce Point Capital has released over 100 forensic short reports, laying out cases against companies across various industries. In April 2025, it revealed short positions in travel tech company Clear Secure and popular beverage producer Monster Energy. Related: Billionaire fund manager, skeptical of AI, backs shocking stock Most recently, though, it published a detailed short report that revealed a bet against Tempus stock. In it, the short-seller estimated that TEM stock posed a "50%-60% potential long-term downside and market underperformance risk" for investors, primarily due to concerns regarding its leadership and AI capabilities. For context, Tempus uses AI to improve precision medicine solutions, as well as drug discovery and diagnostics. Its operating system is reported to analyze medical information and make it accessible for patients, as well as doctors and scientific researchers. However, Spruce Point's researchers make it clear in the report that they harbor grave concerns about the AI hype surrounding TEM stock, suggesting that it may be significantly overblown. The short seller also discusses Tempus founder and CEO Eric Lefkofsky, highlighting comparisons he has drawn to his company and market leaders such as Tesla and Nvidia. "He suggests that Tempus is likely to reach a similar inflection point, and that vast upside is around the corner. However, 10 years since being founded in 2015, there is no evidence that Tempus has generated a profit or net positive cash flow," Spruce Point notes. More AI News: OpenAI teams up with legendary Apple execMajor AI CEO sounds alarm on jobless 'bloodbath' in near-termSalesforce makes a big bet on booming tech market The report raises the point that after a decade of operation, both Tesla and Nvidia had posted $2 billion in revenue and achieved at least one cash flow positive year. It notes that in 2024, only $12.4 million, roughly 2% of Tempus's yearly revenue, came from AI applications. The underlying theme of the Spruce Point short report seems to be that it believes Tempus's AI hype is overblown and poses a massive risk for investors. For that reason, TEM stock earns a Strong Sell Opinion from the firm. Related: Google hit with scathing accusations from top VC firm Not all companies respond after being targeted by a short seller, but on May 29, Tempus issued a statement on X, addressing the report. The company described Spruce Point's claims as inaccurate and misleading, encouraging investors to do their own research. "We do not intend to respond through the media to a report that is riddled with inaccuracies, conjecture, and ill-informed hypotheticals," the health care company stated. "It also fails to address Tempus' history of strong financial performance and impressive growth." Tempus also took its argument a step further, claiming that the last five stocks targeted by Spruce Point are up "on average, over 20% in the past 4 months." The company added that it stands by its results and remains committed to helping health care professionals leverage AI for the benefit of patients. Related: Legendary tech expert has unexpected view of AI impact on jobs The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
30-05-2025
- Business
- Yahoo
A Cathie Wood Favorite Is Falling: Why Tempus AI Stock Is Imploding Today
One of Cathie Wood's largest holdings, Tempus AI, was targeted by a short-seller. The report, released today, alleges Tempus is misleading investors about its use of artificial intelligence (AI), as well as other questionable practices. 10 stocks we like better than Tempus Ai › Shares of Tempus AI (NASDAQ: TEM) are falling on Wednesday. One of Cathie Wood's largest holdings, the company's stock plummeted 18.7% as of 2:15 p.m. ET. The collapse comes as the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) were mostly flat. Tempus, a "precision medicine" company that leverages artificial intelligence (AI) to better treat patients, was the target of a short report from short-seller Spruce Point Capital Management that alleges the stock has as much as a 60% downside. The report, released as the market opened today, outlines Spruce's allegations. The most damning of these include a history of company leadership, especially founder Eric Lefkofsky, creating advanced technology companies that make bold claims they often fail to back up. The report says that the leadership exits the companies, having made millions, early, leaving shareholders with losses or "lackluster" returns. The report also alleges that Lefkofsky and Tempus leadership are misleading the public as to their use of AI. The report states that just before the company IPO'd, as AI hype was peaking, the company rebranded from Tempus Labs to Tempus AI. Despite its centrality in the company's new name, branding, and public statements, only 2% of its 2024 revenue came from AI applications. The report alleges that Tempus' actual ability to utilize AI is vastly overstated. While there are many more allegations -- like accounting irregularities and weakening relationships with core customers like AstraZeneca -- it's important to take it with a grain of salt. The short-seller has a financial stake in seeing Tempus' stock price decline. Still, the report is convincing, and even if most of the allegations prove untrue, I agree with its final assessment that the stock is already overpriced. I would stay away from Tempus, even if it is one of Cathie Wood's favorites. Before you buy stock in Tempus Ai, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Tempus Ai wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool recommends AstraZeneca Plc. The Motley Fool has a disclosure policy. A Cathie Wood Favorite Is Falling: Why Tempus AI Stock Is Imploding Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
