GET DAILY SIGNALSWhy Is Tempus AI (TEM) Stock Down -6.45% Today?
Key Takeaways
- TEM shares fell 6.45% to $74.31, down from a prior close of $79.43, as a sharp post-earnings rally ran out of steam.
- The primary driver was technical profit-taking after a steep, multi-week advance that pushed the stock deep into overbought territory, with no company-specific news behind the decline.
- Secondary pressure came from a broader pullback in high-beta AI and AI-linked healthcare names amid cooling risk appetite.
- The move reflects momentum unwinding rather than a change in fundamentals, which remain underpinned by 23% year-over-year revenue growth and a raised 2026 outlook.
- Traders are watching the upcoming Personalis (PSNL) shareholder vote on November 30 and Tempus's fourth-quarter report expected in early 2027.
- For deeper data on this stock, explore its Price Targets, Earnings, and Forecast pages.
- Discover the top-performing automated strategies currently available by exploring Trending AI Robots.
Opening Summary
Tempus AI, Inc. (TEM) is a Chicago-based precision-medicine company that combines clinical and genomic data with artificial intelligence to power cancer diagnostics, hereditary testing, and data-licensing services for biopharma partners. In Wednesday's session, the stock fell 6.45% to $74.31, down from a prior closing level of $79.43. The decline marked a continuation of a retreat from last week's highs and came as momentum traders locked in gains following a powerful rally that had lifted shares roughly 90% from their late-July lows. Markets attributed the move primarily to profit-taking and technical selling rather than any single news event.
Profit-Taking After a Sharp Rally
The most direct catalyst for Wednesday's slide was the unwinding of an extended advance. TEM shares surged from the mid-$60s in early October to an intraday high above $85 on November 9, punctuated by an 11% single-day gain after strong third-quarter results released on November 2. That report showed revenue of $411.5 million, up 23% year over year, a narrower net loss, positive adjusted EBITDA of $25.6 million, and full-year revenue guidance raised to $1.60 billion to $1.605 billion.
After such a run, momentum indicators had reached extended levels, leaving the stock vulnerable to a round of profit-taking. With no fresh fundamental news on the day, the pullback was widely described by market participants as a technical retracement in a high-volatility name that has posted moves of 5% or more on numerous recent trading days.
Broader AI and Growth-Stock Weakness
The decline also occurred against a backdrop of softening sentiment across high-multiple technology and AI-linked equities. Tempus AI, while fundamentally a healthcare company, is frequently traded alongside AI and growth-oriented names given its data and machine-learning platform. A broader risk-off tilt toward growth and momentum stocks weighed on the sector, amplifying selling pressure in TEM and several AI-enabled drug-discovery and diagnostics peers.
Market Context and Trading Activity
The stock's retreat was consistent with its recent pattern of elevated daily swings rather than a fundamental deterioration. Tempus AI remains well above its 200-day moving average, and even after the pullback, the shares sit above levels seen through most of October. Trading activity in the name has remained robust through the recent move, reflecting active participation from both momentum buyers and sellers. The stock continues to carry one of the higher valuations in its peer group, trading at a premium price-to-sales multiple that leaves it sensitive to shifts in market risk appetite.
What Comes Next for TEM
Looking ahead, investors are focused on several catalysts. Tempus's pending acquisition of Personalis is moving toward completion, with a Personalis shareholder vote scheduled for November 30; the deal is expected to expand Tempus's presence in the minimal residual disease (MRD) testing market, though management has acknowledged it will initially be dilutive. Separately, the company's fourth-quarter report, expected in early 2027, will be closely watched to confirm that the momentum in oncology volumes and data licensing persists. Key risks include potential reimbursement changes in hereditary cancer testing and the broader sensitivity of the stock's premium valuation to shifting sentiment in AI and growth equities.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for TEM turns positive, indicating new upward trend
TEM saw its Momentum Indicator move above the 0 level on October 27, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator turned positive. In 34 of the 36 cases, the stock moved higher in the following days. The odds of a move higher are at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for TEM just turned positive on October 28, 2026. Looking at past instances where TEM's MACD turned positive, the stock continued to rise in 19 of 23 cases over the following month. The odds of a continued upward trend are 83%.
TEM moved above its 50-day moving average on November 06, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TEM crossed bullishly above the 50-day moving average on November 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 8 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 88%.
Following a +19.89% 3-day Advance, the price is estimated to grow further. Considering data from situations where TEM advanced for three days, in 117 of 132 cases, the price rose further within the following month. The odds of a continued upward trend are 89%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TEM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 86%.
TEM broke above its upper Bollinger Band on November 09, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for TEM entered a downward trend on November 02, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 11 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: TEM's P/B Ratio (31.032) is slightly higher than the industry average of (4.477). TEM has a moderately low P/E Ratio (-52.812) as compared to the industry average of (13.414). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.133). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. P/S Ratio (8.696) is also within normal values, averaging (6.065).
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. TEM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 92 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 98 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TEM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 97, placing this stock worse than average.
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