Tempus AI hits with Scathing Short Report

Tempus AI hits with Scathing Short Report It originally appeared thestreet.

May 28th, Tempus AI (TEM)) Stocks plummeted as the market responded to a terrible report from short-seller Spruce Point Capital. A day later, the company responded to accusations against it.

Tempus, a company located at the intersection of healthcare and artificial intelligence (AI), began trading on Nasdaq in June 2024. As a result, Tempus stood out, and investors were hungry to buy new AI stocks.

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Trading was pretty volatile, but TEM stocks have mostly risen, and are now up 35% per year. Since the start of 2025, its performance has been extremely strong, with an almost 60% increase in (YTD) since the start of the year.

A terrible, short report from Spruce Point Capital pushed down the stock this week, but TEM stocks have recovered. Tempus used the opportunity to respond to short selling claims and presented its own view of the allegations.

Tempus AI and CEO Eric Lefkofsky are targeted by a poignant short report by Spruce Point Capital.image Source & Colon. Big Event Media & Sol;Getty Images

Since its founding in 2009, Spruce Point Capital has released over 100 forensic short-term reports and has developed lawsuits against companies in various industries. In April 2025, we revealed the short positions for Travel Tech Company’s Clear Secure and Popular Beverage Monster Energy.

However, recently we have released details Short report It revealed a bet on Tempus stocks. In it, the short seller estimated that TEM stocks pose “50%-60% potential long-term downside and market low performance risks” for investors, primarily due to concerns about its leadership and AI capabilities.

For context, Tempus uses AI to improve precision medical solutions and improve drug discovery and diagnosis. Its operating system is reported to analyse medical information and make it accessible to patients, physicians and scientific researchers.

However, researchers at Spruce Point have revealed in their report that they have serious concerns about AI hype surrounding TEM stocks, suggesting that it may be quite exaggerated.

“After evaluating the split 2-second product demonstration from promotional videos and screenshots from the company’s website, concerns about the company’s AI capabilities have deepened,” the report states. “Apparently, Tempus doesn’t think properly about how to leverage AI to check beyond references.

The short seller also discusses Tempus’ founder and CEO Eric Lefkofsky, highlighting the comparisons he attracted with his company and market leaders such as Tesla and Nvidia.

“He suggests that Tempus is likely to reach a similar inflection point, with vast advantages turning the corner. However, there is no evidence that Tempus has generated profits or net positive cash flows in the decade since it was founded in 2015,” Spruce Point said.

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The report raises that after 10 years of operation, both Tesla and Nvidia have recorded $2 billion in revenue, with at least one cash flow reaching positive. In 2024, it noted that only $12.4 million, or roughly 2% of Tempus’ annual revenue, came from AI applications.

The underlying theme of Spruce Point Short Report is that Tempus’ AI hype is overstated and believes it will pose a huge risk to investors. As a result, TEM stocks have gained strong selling opinions from the company.

Not all businesses will respond after being targeted by a skid dealer, but on May 29th, Tempus A statement has been issued In X, deal with the report. The company said Spruce Point’s claims are inaccurate and misleading, and explained that it encourages investors to do their research.

“We are not going to respond to reports through the media that are full of inaccuracy, speculation and uninformed hypotheses,” the healthcare company said. “It also cannot address the history of strong financial performance and impressive growth.”

Tempus also took it a step further, claiming that the last five stocks SprucePoint targeted were up “on average, over 20% in the last four months.” The company supports the results, adding that it is still committed to helping healthcare professionals leverage AI for the benefit of patients.

Tempus AI hits with Scathing Short Report First appeared on Thestreet on May 31, 2025

This story was originally reported by thestreet It first appeared on May 31, 2025.

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