Why Tempus AI, Inc. (TEM) Crashed on Thursday

We recently compiled a list of the 10 Stocks Mirror Wall Street Downturn. In this article, we are going to take a look at where Tempus AI, Inc. (NASDAQ:TEM) stands against the other stocks.

Shares on Wall Street traded lower on Thursday, as investors moved to unload positions to mitigate risks from uncertainties brought about by key economic factors such as President Donald Trump’s continued tariff threats and policy shifts.

The Dow Jones dived by 1.01 percent, the S&P 500 declined 0.43 percent, while the tech-heavy Nasdaq lost 0.47 percent.

Ten companies also mirrored a broader market downturn, finishing the trading session in the red territory amid a flurry of catalysts dampening investor sentiment.

To come up with Thursday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A computer screen showcasing Artificial Intelligence and Machine Learning algorithms at work.

Tempus AI, Inc. (NASDAQ:TEM)

Shares of Tempus AI, Inc. (NASDAQ:TEM) tumbled by 10.49 percent on Thursday to finish at $76.72 apiece as investor sentiment was weighed down by a series of unloading in shares of the company from its executives.

In separate regulatory filings posted on TEM’s website, several executives sold shares in the company, on Tuesday, February 18. The executives included its chairman and CEO Eric Lefkofsky ($11.97 million); chief operating officer Ryan Fukushima ($234,814); chief finance officer James William Rogers ($2.6 million); chief accounting officer Ryan Bartolucci ($201,532); EVP, chief admin, and legal officer Erik Phelps ($5.07 million); and EVP and general counsel Andrew Polovin ($5.3 million).

The transactions were reported as part of the company’s equity incentive plans, where shares were sold to cover statutory tax withholding obligations upon the vesting of restricted stock units.

Overall TEM ranks 2nd on our list of Thursday’s top losers. While we acknowledge the potential of TEM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. This article is originally published at Insider Monkey.