Core Viewpoint - Tempus AI Inc is set to report its fourth-quarter earnings, with Wall Street anticipating a loss of $0.20 per share and revenues of $203.12 million, while the stock has seen significant gains over the past year and year-to-date [1]. Group 1: Earnings Expectations - Wall Street expects Tempus AI to report a loss of 20 cents per share and revenues of $203.12 million [1]. - The stock has increased over 70% in the past year and 101% year-to-date [1]. Group 2: Technical Analysis - The stock is currently priced at $69.85, below its eight-day simple moving average of $78.67, indicating a moderately bearish trend and potential downside risk [2]. - Despite the short-term bearish pressure, the stock remains above its 20-day and 50-day simple moving averages of $68.19 and $50.50, which are bullish indicators suggesting underlying support [3]. - The Moving Average Convergence Divergence (MACD) reading of 7.67 supports a bullish outlook, while the Relative Strength Index (RSI) at 54.48 indicates neutral momentum [3]. Group 3: Analyst Ratings - The consensus analyst rating for Tempus AI stock is currently a Buy, with a price target of $59.60, suggesting a potential upside of 13.5% [5]. - Recent ratings from TD Cowen, Loop Capital, and Needham imply a downside of 13.52% for Tempus AI stock, with an average price target of $60.67 [5].

Group 1 - Tempus AI (NASDAQ: TEM) is a technology company that integrates genomic and clinical information into its AI platform to offer next-generation products, targeting physicians, researchers, and patients as its main clients [1] - The company has made strategic acquisitions, indicating a focus on expanding its capabilities and offerings in the healthcare technology sector [1]

Core Viewpoint - Tempus AI has experienced a significant stock price increase of nearly 99% since the beginning of 2023, but there remains potential for further growth due to strategic acquisitions and strong revenue retention metrics [1][2]. Company Developments - The recent acquisition of Ambry Genetics allows Tempus AI to enhance its cancer screening capabilities and expand into additional healthcare sectors such as pediatrics, reproductive health, and immunology [3]. - In 2023, Tempus AI reported a net revenue retention rate of 125%, indicating strong customer engagement and potential for future growth [4]. Financial Projections - Management forecasts 2024 revenue of $700 million, excluding Ambry's contributions, which would represent a 32% year-over-year sales growth. Additionally, an EBITDA improvement of over $50 million from 2023 is anticipated [5]. Investment Considerations - Despite the stock's high-risk nature, there is still an opportunity for growth investors to consider investing in Tempus AI, although it is advised that only those comfortable with higher risk should proceed [6].

Group 1 - The overall performance of equities in early 2025 has been lackluster, with no significant upward movement observed [1] - The political environment, particularly the new Trump administration, is influencing market dynamics but has not yet led to a rally in US equities [1]

Core Viewpoint - Tempus AI (NASDAQ: TEM) has recently gained attention, leading to a surge in its stock price, prompting an exploration of potential investment opportunities within the company [1]. Company Summary - The article discusses the recent hype surrounding Tempus AI and its impact on stock performance, indicating a need for further analysis to determine if investment opportunities still exist [1]. Analyst's Position - The analyst has no current stock or derivative positions in Tempus AI but may consider initiating a long position within the next 72 hours [2].

Core Viewpoint - Tempus AI, Inc. is expected to report strong preliminary revenue growth for the fourth quarter and full year of fiscal 2024, driven by its innovative AI-based precision medicine solutions and strategic initiatives in the healthcare sector [2][6][22]. Financial Performance - Preliminary revenues for the fourth quarter are approximately $200 million, reflecting a 35% year-over-year increase, while full-year revenues are around $693 million, up 30% from the previous year [2]. - The Zacks Consensus Estimate for fourth-quarter revenues is $206.3 million and $698.5 million for the full year [3]. - Adjusted EBITDA is expected to show improvement, with a preliminary report indicating a significant sequential rise in the fourth quarter and an overall annual improvement [3][10]. Segment Performance - The Genomics unit is projected to grow revenues by around 30% in the fourth quarter [7]. - Data and Services revenues are anticipated to increase by approximately 45% year-over-year, driven by growth in the Insights data licensing business [8]. Market Position and Growth Prospects - Tempus AI has gained investor interest since its IPO in June 2024, positioning itself as a key player in the rapidly growing AI applications in healthcare [6]. - The company is focused on advancing precision medicine through AI, which is expected to enhance patient outcomes and drive future growth [16][22]. Recent Developments - The launch of the AI-enabled personal health concierge app, olivia, aims to centralize and make health data accessible [17]. - The FDA-approved xT CDx device for solid tumor profiling was also launched, enhancing the company's diagnostic capabilities [18]. - The recent CMS decision to allow reimbursement for the Tempus ECG-AF algorithm supports broader clinical applications [19]. - The planned acquisition of Ambry Genetics is expected to expand Tempus' testing capabilities and enhance its hereditary cancer screening portfolio [20]. Valuation Concerns - Tempus AI's stock is currently considered overvalued, trading at a forward price-to-sales ratio of 8.81, compared to the industry average of 5.85 [21]. - Despite strong long-term growth prospects, the high valuation may limit near-term gains for investors [23].

Company Overview - Tempus AI is a healthcare technology company specializing in advanced medical diagnostics and testing, utilizing techniques such as next-generation sequencing and molecular genotyping [2] - The company serves a diverse clientele, including healthcare providers, pharmaceutical companies, and researchers, by analyzing genetic and molecular information to enhance medical research and treatment [2] Recent Developments - The launch of Tempus AI's AI app, Olivia, has led to a significant stock surge of 45% within a week, with the stock price rising from $34 to $51 [1][3] - Olivia functions as an AI-powered personal health assistant, consolidating health information and providing recommendations based on data analysis [3][4] - The app integrates with devices like Apple Watch and Google Fit, allowing users to track health metrics and manage clinical history [4] Financial Performance - Tempus AI's sales increased from $188 million in 2020 to $640 million over the last twelve months, with preliminary results for 2024 indicating a projected sales growth of 30% year-over-year, reaching $693 million [5] - Despite the sales growth, the company is currently operating at a loss, with an operating loss of $693 million and a net loss of $801 million [5] - Analysts estimate that sales could reach around $1 billion by 2025, reflecting continued growth potential [5][7] Stock Performance and Market Outlook - TEM stock underperformed the broader market last year, with a return of -16% compared to a 23% gain for the S&P 500 [6] - The average analyst price estimate for TEM stock suggests an 11% upside from its current level of $51, with a price-to-sales ratio of 11x trailing revenues [7] - The company has experienced an average annual sales growth rate of 39% over the last four years, with expectations for this growth to continue, particularly with the introduction of Olivia [7]

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Disclosure and Disclaimer - The author has no stock, option, or derivative positions in the mentioned companies but may initiate a long position in TEM within the next 72 hours [1] - The views expressed are as of the article's date and are subject to change without notice, with no obligation to update the information [2] - The article is for educational purposes only and does not constitute an offer to buy or sell securities or provide advisory services [2] - Information and data are derived from third-party sources, and while deemed reliable, their accuracy and completeness are not guaranteed [2] - Past performance does not guarantee future results, and no investment recommendations are provided [3] - Seeking Alpha is not a licensed securities dealer, broker, or investment adviser, and its analysts may not be licensed or certified [3]

Key TakeawaysShares of Tempus AI had their best day on record on Tuesday after the company launched an AI-powered health concierge. The stock also got a boost from former House Speaker Nancy Pelosi, who revealed a stake in the company in a stock trading disclosure on Tuesday.Some analysts expect software companies like Tempus to be major beneficiaries of AI this year as they roll out AI agents—digital assistants with greater autonomy than chatbots. Tempus AI (TEM) stock had its best day on record on Tuesday ...