Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in TEM over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking ...

Core Insights - The integration of artificial intelligence (AI) in healthcare is creating new tech-driven innovators, with Tempus AI and Doximity emerging as key players in the AI health tech space [1][2] Tempus AI - Tempus AI focuses on AI-driven precision medicine, particularly in oncology and chronic disease management [2] - The company reported a 35.8% year-over-year revenue growth in Q4 2024, with gross profit rising by 49.7%, indicating improved operational leverage [3] - Tempus AI's Data and Services business achieved a 140% net revenue retention rate and has $940 million in remaining contract value, which management plans to reinvest in technology and talent [3] - Recent acquisitions of Deep 6 AI and Ambry Genetics expanded Tempus AI's clinical footprint to over 750 sites and 30 million patients, enhancing its precision medicine platform [4] - Although Q4 adjusted EBITDA was negative $7.8 million, it showed a $27.3 million year-over-year improvement, with expectations of reaching $5 million in positive adjusted EBITDA [5] - The Zacks Consensus Estimate suggests a 63% improvement in Tempus AI's loss per share for 2025 compared to 2024 [11] Doximity - Doximity reported a 25% year-over-year revenue increase in Q3 fiscal 2025, exceeding guidance by 10%, and raised full-year revenue expectations by $28 million [6] - Adjusted EBITDA reached a record $102 million with a 61% margin, up from 54% the previous year, indicating a scalable business model [6] - User engagement metrics are strong, with over 1 million prescribers on the news feed and a 60% quarter-over-quarter increase in AI usage [7] - Doximity is positioned to outpace the market with expected revenue growth of 13% in Q4 and 19% for the full year [8] - The Zacks Consensus Estimate implies a 37.9% improvement in Doximity's EPS for fiscal 2025 compared to the previous fiscal [12] Stock Performance & Valuation - Over the past three months, Tempus AI's stock has increased by 24.6%, while Doximity's stock has risen by 3.7%. However, Doximity has seen a 99.3% increase over the past year compared to Tempus AI's 0.1% rise [9] - Tempus AI trades at a forward price-to-sales (P/S) ratio of 5.24, below its one-year median of 8.49, while Doximity's forward sales multiple is 15.29, above its median of 14.39 [13] - Doximity has an average brokerage recommendation of 2.20, indicating a "Buy," while Tempus AI has a recommendation of 2.24, indicating a "Hold" [14][17] Investment Outlook - Doximity is considered a more stable and financially sound investment opportunity, with strong profitability, margins, and user engagement [20] - Tempus AI, while rapidly growing, is still in the investment phase and has yet to report positive earnings, making it less attractive for risk-averse investors [21]

Company Overview - Thermo Fisher Scientific has launched the Thermo Scientific Krios 5 Cryo-Transmission Electron Microscope (TEM), which utilizes enhanced optics and AI-enabled automation for advanced molecular structure analysis [1] - The Krios 5 is expected to strengthen the company's Materials and Structural Analysis business unit [1] Product Features - The Krios 5 Cryo-TEM offers a throughput improvement of up to 25% compared to previous models, enabling 3D visualization of proteins and their interactions within biological cells [5] - It includes AI-powered experimental setup and upgraded data acquisition, along with a vacuum capsule transfer system to prevent sample contamination [5] - The microscope features a low-power standby mode to minimize energy consumption and is certified with the My Green Lab ACT Ecolabel, supporting sustainability goals [6] Market Performance - Following the announcement of the Krios 5, Thermo Fisher's shares increased by 1.3%, closing at $489.06 [2] - The company currently has a market capitalization of $184.50 billion and an earnings yield of 4.8%, significantly higher than the industry's -3.5% yield [3] Industry Prospects - The global cryo-electron microscopy (cryo-EM) market is projected to reach $1.45 billion by 2025, with a compound annual growth rate of 11.9% through 2032, driven by increased focus on structural biology and rising funding [7]

The healthcare technology space is gaining enormous investors' attention these days, thanks to the rapid advancements in artificial intelligence (AI) in this niche. Companies like Tempus AI (TEM) are leading the charge by leveraging AI for precision medicine. The stock's 42.9% surge year to date strongly underscores a broader market shift—highlighting the increasing belief that AI-driven healthcare is gaining strength as a high- value investment opportunity. Year to date, the stock has outperformed the 6.6% ...

Group 1 - The analysis focuses on the growth prospects of companies, utilizing the Discounted Cash Flow (DCF) model for valuation purposes [1] - Insights are provided on cash flow generation under different business models, indicating a thorough review process [1] Group 2 - There is no indication of any stock, option, or derivative positions held by the analyst in the companies mentioned, ensuring an unbiased perspective [2] - The article reflects the author's own opinions and is not influenced by compensation from any company [2]

Artificial Intelligence (AI)-based healthcare solutions company Tempus AI (TEM) has continued to capture investors’ attention despite reporting weaker-than-expected fourth-quarter 2024 results on Feb. 24, 2025. The earnings miss led to an immediate decline in the company’s share price, raising short-term concerns among investors. However, analysts continue to express confidence in Tempus AI’s long-term growth trajectory, backed by strategic acquisitions, partnerships, and expanding revenue streams. In parti ...

Core Viewpoint - Tempus AI, Inc. has acquired Deep 6 AI to enhance its precision medicine capabilities through AI-driven insights, aiming to improve patient recruitment and trial efficiency [1][4]. Company Developments - The acquisition of Deep 6 AI will streamline the process of connecting patients with relevant clinical trials, expediting the development of new treatments [2][6]. - Tempus integrates Deep 6 AI's advanced machine learning algorithms into its existing platform, allowing for real-time analysis of patient data to optimize trial outcomes [9]. - Tempus has a market capitalization of $7.85 billion and expects 42% earnings growth over the next five years, compared to the industry's 20.8% growth [5]. Industry Context - The acquisition strengthens Tempus' position in the rapidly growing AI-driven healthcare market, potentially boosting its stock price in the long run [4]. - Deep 6 AI's technology mitigates risks in clinical trials and enhances patient recruitment by analyzing both structured and unstructured electronic medical record data [8].

Core Insights - Wendy has launched a children's story-building toolbox app aimed at enhancing creativity and promoting reading among children, countering the trend of increasing digital activity and declining literacy rates [1][3] Company Overview - Wendy is a Chicago-based start-up founded in June 2023, focused on helping children rediscover the joy of reading through an innovative app that combines story-building with technology [7] - The app has received kidSAFE certification and a 5-star review from the Educational App Store, ensuring a safe environment for children to engage in creative play [2] Product Features - The Wendy app allows children to participate in a guided, choice-based story-building process using safe AI, enabling them to create unique, professional-quality short stories in minutes [2] - Key features include the ability to create reusable characters and settings, connect with friends, and enjoy stories through reading, narration, or as audiobooks [2][4] Market Context - A recent Scholastic study indicates a significant rise in children's digital activities since 2018, with 84% of kids engaging in gaming daily and 82% watching YouTube videos, highlighting the competition for children's attention [3] - The study also notes a 40% decline in reading enjoyment and frequency among children aged 8 to 9, termed the "Decline by 9" [3] Funding and Leadership - Wendy raised $2.25 million in its pre-seed round led by Lightbank, with participation from strategic angel investors [5] - The leadership team includes seasoned start-up veterans, many of whom have previously worked with the founder, Lance Neuhauser, who has a successful track record in venture capital and private equity-backed companies [5] Business Model - Wendy aims to create sustainable, ethically sourced intellectual property relationships with the professional publishing community, compensating authors and illustrators for their contributions [4] - The app is available via subscription on the iOS platform, providing parents with an alternative to gaming and passive video consumption [6]

Core Insights - The article discusses the investment landscape and the potential opportunities within the market, emphasizing the importance of thorough research and analysis before making investment decisions [1] Group 1 - The author highlights the significance of understanding market trends and company fundamentals to identify potential investment opportunities [1] - There is a mention of the role of financial disclosures and transparency in building investor trust and making informed decisions [1] - The article suggests that investors should remain vigilant and continuously monitor their investments to adapt to changing market conditions [1]

Core Viewpoint - Tempus AI has experienced a significant decline in stock price following weaker-than-expected Q4 2024 results, despite a strong year-to-date performance and a positive long-term growth outlook driven by revenue forecasts and strategic acquisitions [1][2][3]. Financial Performance - In Q4 2024, Tempus AI achieved a 35.8% year-over-year revenue growth, with Genomics sales growing by 30.6% and Data and Services growing by 44.6% [6]. - The company ended 2024 with a total remaining contract value of $940 million and a net revenue retention rate of 140%, indicating strong customer engagement [6]. - For fiscal 2025, Tempus AI forecasts revenues of $1.24 billion, representing a 79% year-over-year growth [12]. - The adjusted EBITDA is expected to improve to $5 million in 2025, a $110 million increase compared to 2024 [13][15]. - The cumulative operating cash outflow was reduced to $189 million at the end of Q4 2024, down from $214.3 million a year ago [16]. Strategic Developments - The acquisition of Ambry Genetics, finalized in February 2025, enhances Tempus' genomics capabilities [7]. - A five-year extension of the partnership with Google ensures favorable cloud computing costs and technological support, crucial for Tempus' AI-driven solutions [8]. - Regulatory achievements include FDA approval for the xT CDx diagnostic device and CMS reimbursement approval for the Tempus ECG-AF algorithm, validating the company's AI technology [9][10]. Market Position and Comparisons - Year-to-date, Tempus AI's stock has increased by 75%, outperforming the Medical Info Systems industry (21.6%) and the Medical sector (6.4%) [3]. - The stock is currently trading at a forward price-to-sales ratio of 9.9, higher than the industry average of 6.17 and other competitors like iRhythm Technologies (5.13) and SOPHiA GENETICS (3.15) [22]. Outlook and Investor Sentiment - The AI market is projected to grow significantly, positioning Tempus AI to capitalize on expanding opportunities in healthcare [24]. - Despite long-term growth potential, the recent disappointing Q4 performance and high valuation may limit near-term gains, suggesting that new investors should wait for a better entry point [25].