Why Tempus AI, Inc. (TEM) Went Down on Tuesday

We recently published an article titled Two of 10 Worst-Performing Stocks Fall to All-Time Lows on Tuesday. In this article, we are going to take a look at where Tempus AI, Inc. (NASDAQ:TEM) stands against the other stocks.

Wall Street extended a lackluster performance on Tuesday, with two of its major indices ending with marginal movements amid a series of key economic factors dampening investor sentiment.

Only the Dow Jones finished in the green territory, posting a 0.37 percent gain. In contrast, the S&P decreased by 0.47 percent while the tech-heavy Nasdaq fell by 1.37 percent.

Mirroring the mostly broader pessimism are 10 companies, with two even falling to new all-time lows. In this article, we have detailed the reasons behind their drop.

To come up with Tuesday’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)

Tempus AI, Inc. (NASDAQ:TEM) saw its share prices fall by 15.05 percent to finish at $59.10 apiece as investors sold off positions following dismal earnings performance in full-year 2024.

In a statement, Tempus AI, Inc. (NASDAQ:TEM) said net loss for full year 2024 expanded by 229 percent to $705.8 million from $214 million in 2023, despite revenues increasing by 30.5 percent to $693 million from $531 million.

Meanwhile, net loss for the fourth quarter narrowed by 74 percent to $13 million from $50.5 million in the same period last year.

For this year, Tempus AI, Inc. (NASDAQ:TEM) expects full-year revenue of approximately $1.24 billion for the consolidated TEM and Ambry Genetics business, which represents approximately 79 percent annual growth, and adjusted EBITDA of $5 million for the full year 2025, an improvement of approximately $110 million over 2024.

Overall TEM ranks 4th on our list of Tuesday’s worst performers. While we acknowledge the potential of TEM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as TEM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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