Cathie Wood’s ARK Investment loaded up on more shares of medical technology business Tempus AI (TEM) on Monday, January 13th, as the stock took a nosedive on a soft earnings report.
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Shares of the AI-based precision medicine company plunged almost 14% as it forecast Fiscal fourth quarter sales to be below Wall Street estimates.
In preliminary results the company said it expected revenue for the fourth quarter around $200 million, an increase of around 35% year-over-year, but a little short of the expected revenue of $205.7 million.
Providing more detail, Chief Executive Eric Lefkofsky said genomics revenue growth was around 30% in the fourth quarter, while data and services revenue is expected to be up 45%.
Annual sales rose by 30% from the previous year to reach around $693 million.
ARKG Is TEM Buyer
But sticking to its bull thesis, Cathie Wood’s ARK Investment bought 379,000 shares of Tempus AI, adding to its holding of the stock in its ARK Genomic Revolution ETF (ARKG).
It takes the ARKG holdings of TEM to more than $47 million, comprising 4.08% of the ARKG fund’s total holdings. The largest holdings in the fund are Twist Bioscience (TWST), Recursion Pharmaceuticals (RXRX) and Crispr Therapeutics (CRSP).
TEM peaked at $79.49 in June after its initial public offering, hitting a low of $22.89 in November.
Is TEM a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on TEM stock, based on six Buys, three Holds and no Sells. The average TEM price target of $59.56 implies around 86% upside from current levels. Shares of TEM have declined 36% in the last three months.
