Tempus AI: Plenty Of Growth Catalysts Ahead, Grab It While It's Down
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Gytis Zizys3.72K FollowersFollow5ShareSavePlay(13min)CommentsSummaryTempus AI remains a Buy after a market-driven correction, with operational performance and partnerships strengthening the long-term thesis.TEM's organic revenue grew 28% y/y, gross margins improved 450bps to 63%, and liquidity increased to $760M, supporting continued investment and debt service.Management targets sustainable 25% annual genomics growth through 2028, with high-margin Data & Insights segment poised for outsized profitability.Profitability is within reach as expense growth slows, but risks include ongoing losses, leverage, and the need to monetize AI-enabled diagnostics. gorodenkoff/iStock via Getty Images Introduction I wanted to revisit Tempus AI (TEM) as its share price meaningfully corrected due to worsening market sentiment, and most likely nothing to do with the company’s performance, as that continues to improve significantly.This article was written byGytis Zizys3.72K FollowersFollowMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.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 Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.