Tempus AI Stock Skyrockets: Here’s Why Traders Are FOMOing In
Tempus AI just pulled a classic 'buy the rumor, sell the news'—except this time, the news was actually good.
AI hype meets earnings surprise
Wall Street's latest tech darling surged after dropping an earnings bomb that left short sellers scrambling. No concrete numbers? No problem—when the algo traders smell momentum, fundamentals take a backseat.
The institutional pump is real
Three bulge-bracket banks upgraded the stock simultaneously—what are the odds? Meanwhile, retail investors are left deciphering whether this is the next NVDA or just another overvalued AI play.
Another day, another stock riding the AI wave while traditional value investors grind their teeth. The market may be irrational, but it's never boring.
Image source: Getty Images.
Tempus AI stock rose on the strength of Q2 sales momentum
The company saw an adjusted loss of $0.22 per share on revenue of $314.6 million in the second quarter. The average Wall Street analyst estimate had targeted an adjusted per-share loss of $0.25 on sales of roughly $297.8 million.
Sales increased roughly 90% year over year and far surpassed Wall Street's expectations, with strong momentum for the company's genomics segment powering huge growth. The stock gave back some of its early gains as today's trading progressed, but the healthcare AI software specialist delivered a strong quarterly report.
What's next for Tempus AI?
In conjunction with its better-than-expected sales growth in the second quarter, Tempus AI raised its sales outlook for this year. The company now expects full-year revenue to come in at roughly $1.26 billion, up from its previous target for sales of $1.26 billion. The new target suggests annual sales growth of roughly 86%.
The company also said that it anticipates posting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $5 million this year -- representing a $110 million improvement over last year's performance. With strong sales growth and signs of improving margins, Tempus AI could be on track to deliver strong results for long-term shareholders.
