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Tempus AI - AI Stock Analysis
Analysis generated March 3, 2025
Tempus AI is a leading firm in the artificial intelligence sector, specializing in providing advanced AI solutions to a variety of industries. The company has seen significant growth both in terms of revenue and industry presence. Their innovative technologies aim to streamline processes and enhance productivity for their clients, making Tempus AI a compelling player in the market.
Fundamental Analysis
Revenue: For the last quarter, Tempus AI reported a revenue of $181 million. This denotes an increase of 9.01% compared to the previous quarter and a rise of 32.98% year-over-year, showcasing robust growth over both short and long terms.
Net Income: The net income for the last quarter was $76 million. This is an 86.27% increase from the previous quarter, indicating strong short-term growth. However, there's a decrease of 41.95% compared to the same quarter last year, which highlights a potential issue in profitability year-over-year.
EBITDA: Last quarter's EBITDA was $51 million, a 90.29% increase from the preceding quarter, signaling strong operational performance. Yet, there's a 56.15% decrease year-over-year, which may be indicative of higher costs or operational inefficiencies.
There have also been a few instances of company insiders selling their stock recently, a potentially bearish signal that suggests insiders may be expecting a downturn.
Technical Analysis
Current Stock Price: The current stock price is $54.87, reflecting a 10.84% decrease compared to a month ago. This short-term decline could be concerning for some investors.
Long-Term Trend: Compared to a year ago, the stock price has increased by 36.32%, suggesting a positive long-term trend despite recent fluctuations.
Moving Averages: The SMA10 is currently 60.58, which is lower than the previous SMA10 of 61.90, indicating a potential downward trend in the stock price.
RSI: The current Relative Strength Index (RSI) is 40.7, which suggests a neutral condition. However, it is close to the oversold territory, which could indicate a potential buying opportunity if it drops further.
Alternative Data Analysis
Job Postings and Employee Sentiment: Tempus AI has 118 open positions, up by 17% in the last couple of months. This growth in job postings indicates that the company is preparing for expansion, a healthy sign of prospective growth. Employee sentiment about the business outlook is neutral.
Customer Acquisition: The company’s website has estimated 190,000 visitors. This number has surged by 116% in recent months, indicating a bullish trend likely linked to increased customer interest and acquisition.
Customer Engagement: On social media, Tempus AI has seen a rise in following, with 2,400 followers on Instagram (up by 27%) and 9,400 followers on Twitter (up by 34%). These increases suggest a growing public interest in the company.
AltIndex’s AI Score: AltIndex’s AI score for Tempus AI is 69, which suggests a buy signal based on an aggregate of fundamental, technical, and alternative data analyses.
Conclusion and Recommendation
Tempus AI presents a complex investment scenario. The fundamental analysis indicates robust revenue growth but mixed signals on net income and EBITDA. Technical analysis shows a near-term bearish trend but a favorable long-term outlook. The alternative data provides bullish insights, with increased job postings, website traffic, and social media engagement. Given these mixed signals, especially the positive signs from long-term technical and alternative data, a cautious buy recommendation is suggested. Prospective investors should monitor the stock closely for any significant changes in the underlying metrics and market conditions.
Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.
