Is Tempus AI Worthy?

Investing Strategies Abandoned Arctic Outpost #13
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Note One). Nothing you might stumble across here represents, in any form or fashion, a stock recommendation. Why? Well simply cause it ain’t. Besides..what sort of moron would act on a stock recommendation from someone called Big Dumb Hick? Only an imbecile - right? Always perform your own due diligence.

Tempus AI - Market Alias = TEM

Tempus AI, Inc. operates as a healthcare technology company. It engages in providing next generation sequencing diagnostics, polymerase chain reaction profiling, molecular genotyping, and other anatomic and molecular pathology testing to healthcare providers, pharmaceutical companies, biotechnology companies, researchers, and other third parties.

A Few Data Points:

Current Price: $65.87
52 Week Range: 22.89 - 91.45
30 Day Momentum: +22.5%
YTD: + 95.11%
Market Cap: $10.8B (give or take)
Short Interest: 11.3%

Revenue Last 4 QTRS:

FQ1: 255.74M
FQ4: 200.68M
FQ3: 180.93M
FQ2: 165.97M

FQ1 Press Release :

CC Transcript:

https://seekingalpha.com/article/4782613-tempus-ai-inc-tem-q1-2025-earnings-call-transcript#source=section%3Aearnings_summary|section_asset%3Aearnings_history|first_level_url%3Asymbol|button%3Atranscript

Highlights:

  • EPS Beat by .03 Cents
  • Revenue Beat by $7.61M
  • Revenue Growth of 75.4% YoY
  • Quarterly gross profit increased 99.8% year-over-year, reaching $155.2 million with continued gross margin improvement in both Genomics and Data and services
  • Announced multi-year, strategic collaborations with AstraZeneca and Pathos to work together to build the largest multimodal foundation model in oncology, resulting in additional $200.0 million in data licensing and model development fees over the next 3 years.
  • Increasing full year 2025 revenue guidance to $1.25 billion, representing approximately 80% growth year-over-year. Expect positive Adjusted EBITDA of $5 million for full year 2025, increasing approximately $110 million over 2024.

CC Quote from CEO:

“The business is performing well with revenues growing, margins improving, and our costs remaining in check, allowing us to demonstrate significant year-over-year operating leverage,” said Eric Lefkofsky, Founder and CEO of Tempus. “Our strategic investments in AI have us uniquely positioned to advance what is possible in diagnostics and drug development, as evidenced by our announcement to build the largest foundation model in oncology with AstraZeneca and Pathos. We believe this is just the beginning as more and more healthcare providers and life science companies embrace AI.”

A couple of Scouting Reports:

https://seekingalpha.com/article/4789726-tempus-ai-firing-on-all-cylinders#source=section_asset%3Arelated-analysis%7Csection%3Aright_rail%7Cfirst_level_url%3Aarticle%7Cline%3A1%7Cpos%3Aundefined

https://seekingalpha.com/article/4789379-sell-tempus-ai-stock-before-the-cooldown-hits#source=section_asset%3Arelated-analysis|section%3Aright_rail|first_level_url%3Aarticle|line%3A2|pos%3Aundefined

https://seekingalpha.com/article/4788632-tempus-is-this-ultra-fast-growing-company-a-good-investment#source=section_asset%3Arelated-analysis|section%3Aright_rail|first_level_url%3Aarticle|line%3A4|pos%3Aundefined

All The Best,
Big Dumb Hick - Considering

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Spruce Capital short report today.

They cite leadership and accounting.

Stock down about 19%.

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Hi Jaroman:

Saw that. Almost too perfect timing if you research TEM and come down on the Buy side - Unless…of course, you believe the SReport.

I might have doubt but the announcement of the new multi-million dollar contracts in the CC are strong positives for the growth side of things. Maybe.

All the Best,
Bid Dumb Hick - Still considering but closer to adding a Scout Team level position.

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I bought a tiny bit.

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I am not invested in growth just now; although, it’s looking more and more like the second half of the year will be strong. My original plan was to enjoy the summer and consider rebuilding the portfolio in late August through October or so. On the fence a bit just now.

All the Best

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I know you’re not.

I keep a small amount of growth-for fun, I guess.

Enjoy your summer for sure!
There will be something(s) interesting in the fall, if it feels interesting then.

Just don’t stop entertaining us with your fabulous thoughts!
I always get a big smile when I read them.

Julie
PS Don’t empty the wine cellar!

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Thanks Julie

All the Best,

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My Coreweave shares were borrowed today. That usually means that I am going to get slaughtered to the down side, but I am a contrarian and love my blood in the streets. Anyway it has a J hook pattern which usually means someone has caught a sucker.

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“It is not the mountain we conquer…but ourselves”
Sir Edmund Hillary

Just like with mountain climbing - investing in an ever changing stock market requires that we control our emotions to achieve the results we hope to. Unless of course, it doesn’t. And in general - that’s one of the two advantages that Income investing has over Growth investing.

The first advantage comes from the treatment of profits. In Growth it is always my inclination to just let Growth stocks run; which, always happens until it doesn’t. With income stocks I can take profits - in the form of distributions or dividends right off the top - and do with them as I wish. With Growth the only way to take profit is to sell shares - which usually only occurs under two circumstances: 1) A Quarterly report comes out and either shows slowing growth - and/or - poor guidance - and then in a blink of an eye the stock price (and your profit) can drop 15/20%. Gone! With Income things usually and mostly move slower - not always of course - but in my experience enough to make decisions that don’t depend on Do or Die immediacy. Or something very similar to that.

Still - Growth investing seems much more fun and rewarding to me. Income may be slow and (mostly) steady - it’s just pull your hair out boring. On the other hand, if you understand and can employ Trading Blocks you are actually taking short term profits off the top : seems like a better than middling solution to just letting growth run until it falls off a cliff. Or something like that.

All the Best,
Big Dumb Hick - Taking the Summer Off

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Shhh! Don’t let on to lady Ears there’s a spider between the kitchen window pane and screen. She’d dispatch it immediately! I suggested that it move to the attic because NOBODY goes to the attic, but it shrugged me off. Apparently it gets a kick out of dodging brooms, not to mention the occasional violent tempests that come our way. Life in the attic would be way too boring. I think it’s in that spider’s DNA to dodge brooms and storms.

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Congrats BnHiD:

With those returns you have more than enough to invest in a TaTa Tacos.

All the Best,
Big Dumb Hick - On Sabbatical

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