Tempus AI (TEM) made its trading debut on the Nasdaq with an IPO. The stock opened at $37 a share in trading on Friday and has since surged. Market Domination hosts Julie Hyman and Josh Lipton look at Tempus within the broader AI story.
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This post Luke Carberry Morgan.
Video Transcript
Tempest AI makes its Wall Street debut.
Trading began on the Nasdaq today, and the company priced its initial public offering at $37 per share.
So, since this was an instrument, it would be my debut.
Well, they're kind of using AI to process medical data.
Well, they've actually been around for quite some time, Julie, and they were actually founded in 2015 and financially they describe their business as creating intelligent diagnostics for precision medicine, and they're projecting revenue of $532 million in 2023.
This is up from 321 million the previous year.
It incurred a loss of around 200 million yen in 2011 and appears to still be losing money.
Of course, it's not uncommon for technology companies to go public.
Well, when you post a loss, investors often ignore it, especially if it has AI in the name.
Well, it's not as common as it used to be, but it does seem like we're seeing more and more mature companies going public and posting profits.
But that's not the case here.
Well, it’s interesting what they’re doing.
They will likely link test results with individual clinical data and analyze it using AI.
So let's see what happens to them going forward.
The stock was up as much as 18% at one point during the day.
But as you can see, it's up about 10.5%.
Incidentally, the CEO, Eric Lefkofsky, is also the co-founder of Groupon, which is an interesting and very different business.
I don't know what lessons he's applying, but I'm sure he's applying something.
We hope he will come and talk to us so we can ask him if that is a formal invitation to Eric.
