Why Tempus AI (TEM) Crashed on Tuesday?

We recently published a list of 10 Stocks Kick Off Trading Week With Losses. In this article, we are going to take a look at where Tempus AI, Inc. (NASDAQ:TEM) stands against other stocks kick off trading week with losses.

Wall Street’s main indices began the shortened trading week on a lackluster note, albeit finishing in the green, as investors continued to digest corporate earnings results.

The S&P 500 led the charge, recording a modest 0.24 percent gain. However, the Dow Jones and the tech-heavy Nasdaq posted gains of only 0.02 percent and 0.07 percent, respectively.

Ten companies performed poorly on Tuesday amid a series of negative catalysts that disappointed investors. In this article, we identified the 10 worst performers and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

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Tempus AI, Inc. (NASDAQ:TEM)

Shares of Tempus AI, Inc. (NASDAQ:TEM) declined by 8.37 percent on Tuesday to finish at $81.95 apiece as investors resorted to profit-taking following a four-day rally last week, buoyed by its partnership with a non-profit organization for the development of a treatment for follicular lymphoma.

In a statement, Tempus AI (NASDAQ:TEM) said it partnered with the Institute for Follicular Lymphoma Innovation (IFLI) to develop targeted therapies for the disease by developing a real-world multimodal, deidentified data library in its data analytics platform, through which researchers may derive AI-driven insights to accelerate the development of follicular lymphoma treatments in an effort to improve patient outcomes.

The two parties will focus on prospectively generating multimodal data, particularly for POD24 patients who experience disease progression within 24 months of treatment.

Data from the National Cancer Institute as of 2024 showed that individuals with follicular lymphoma currently have a survival rate of 89.9 percent. It is most frequently diagnosed among people aged 65 to 74.

Overall, TEM ranks 9th on our list of stocks kick off trading week with losses. 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.