Tempus AI stock price remains in a deep bear market as investors worry that the hype that drove it to a record high was ending. The TEM stock initially peaked at $91.40 in February, and has now plunged to a low of $37.2, meaning that it has dropped by 60%. So, is it safe to buy the dip or wait for it to fall further?

Why Tempus AI has plunged

Tempus AI is one of the top American companies in the artificial intelligence space. Its goal is to help all players in the medical industry to simplify their operations, boost innovation, reduce costs, and grow sales. 

The Tempus Platform comprises three key components, including Tempus Hub, Tempus Lens, and Tempus Lens. Tempus Hub is a platform that streamlines providers’ workflows and gives access to patient insights. 

Lens is a platform that helps researchers to find, access, and analyze multimodal data and uncover crucial insights. Next is a tool that helps providers deliver the next steps in a patient’s care data. 

Analysts believe that the medical industry is one of the best use cases for the artificial intelligence industry. It is primarily useful in research since large AI models can analyze vast data within minutes. 

AI technology is also useful in areas like diagnostics and treatment. It generates results like DNA, RNA, clinical imaging, clinical EMR, and epigenetics. 

Tempus AI business has grown rapidly in the past few years as more companies have embraced its technology. It is now used by some of the top companies in the healthcare industry like AstraZeneca, GlaxoSmithKline, BioNTech, Rain Oncology, and Kronos Bio.

TEM business is growing

The most recent results showed that Tempus AI business was growing. Its quarterly revenue rose by 35.8% YoY in the last quarter of 2024 to $200.7 million. Most of this revenue came from its genomics segment, which made over $120.4 million. The data and services segment rose to $80.2 million.

Most importantly, the company is making more strides to become profitable. Its gross profit rose by almost 50% to $122.1 million, while the net loss improved to $13 million, up from $50 million a quarter earlier. 

The annual revenue jumped by 30% to $693 million, with its genomics business making over $451.7 million. The data and service segment rose to $241 million.

Analysts are optimistic that the Tempus AI business will continue doing well this year. The average estimate is that its first quarter revenue will be $248.8 million. Its annual revenue will be $1.24 billion, followed by $1.55 billion next year. The company will break even next year. 

Analysts are highly bullish on the TEM stock, with the average estimate being $64.22, higher than the current $37.23.

Read more: Cathie Wood bets big on Tempus AI: Is it the next big thing in health-tech?

Tempus AI stock price analysis

TEM stock chart | Source: TradingView

The daily chart shows that the TEM share price has crashed in the past few weeks, moving from the year-to-date high of $91.40 to a low of $37.23. This price is along the ascending trendline that connects the lowest swing since June last year. 

The stock has moved below the 25-day moving average. It has also moved slightly below the bottom of the trading range at $37.5. The Relative Strength Index (RSI) also dropped below the middle line at 50.

Therefore, the stock will likely continue falling as sellers target the key target at $25, the strong pivot, and reverse at $25. In the future, however, Tempus AI stock price will likely bounce back, and possibly retest its all-time high.

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Lululemon stock price has imploded this year as Wall Street remains concerned about its growth trajectory and tariff risks. LULU has collapsed for three consecutive weeks and has moved to its lowest level since September 9. It has dropped by over 41% from the highest point this year and 52% from its 2024 highs. This article explains why LULU shares may plunge further.

Lulumen Athletica faces a double whammy of risks

Lululemon stock price has crashed as the company faces a double whammy of challenges. The first main issue is that the company’s growth has slowed in the past few years due to competition from companies like The Gap, Adidas, On, and Nike. 

Its revenue growth has also slowed because demand has weakened moderately after peaking during the pandemic. Also, the elevated inflation and supply chain issues have affected its business trajectory.

The most recent financial results show that the company’s business was faltering. These numbers showed that the net revenue rose by 13% in the fourth quarter to $3.6 billion. Its higher margin Americas division had sales growth of just 7%, while the international segment grew by 38%. Most of this growth came from China.

These numbers brought the annual revenue to $10.6 billion, up by 10% from 2023. Again, the Americas revenue rose by 4%. 

The company is also facing the double whammy of Donald Trump’s tariffs that will hit demand and margins. He added a 47% tariff on Vietnam, where the company makes most of its clothes. Other countries like Indonesia, Bangladesh, and Taiwan, were also hit with tariffs.

Lululemon will still continue to make its clothes in these countries because of their low cost of doing business and expertise. Even with tariffs, it will be much cheaper and convenient to use these places. 

The company will now be forced to hike prices for products sold in the United States. Substantially higher prices may turn off customers who are dealing with inflationary pressures. As such, the firm will likely be forced to stomach some of these costs soon. 

Read more: Lululemon stock is unlikely to find its mojo again in 2025

LULU growth to moderate

Therefore, there is a likelihood that Lululemon’s business will slow down substantially this year. Before the tariffs, Wall Street analysts were expecting its first quarter revenues to come in at $2.36 billion, up by just 6.7% from the same period last year. This is significantly slow growth for a company that used to have regular double-digit growth metrics. 

These analysts see the Q2 revenue at $2.57 billion, a 8% annualized increase. Its annual revenue will be a 5.9% annualised increase. As such, while Lululemon has a record of beating estimates, there is a likelihood that it will adjust its estimates because of these tariffs. 

Therefore, LULU’s efforts to boost its stock, including the regular share purchases, will be unlikely to work.

Lululemon stock price analysis

The monthly chart paints a clearer picture of what is happening with the LULU share price. It shows that it formed a double-top pattern at $485 in 2021 and in January 2024. A double-top is one of the most bearish patterns in the market. 

The stock is now hovering at its neckline at $252, its lowest swing on May 2022. The distance between the double top and the neckline is at $252. Measuring the same distance from the neckline brings the target to $130. Such a move will mean that the stock crashed by about 73% from its all-time high.

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The global luxury industry is bracing for its longest downturn in more than two decades, as Donald Trump’s sweeping new tariffs fuel concerns of a worldwide recession.

Hopes that affluent Americans might prop up the struggling sector are fading, with Wall Street analysts warning of sliding sales and profits across the $400-billion-a-year industry.

European countries, home to the majority of luxury brands, face a 20% tariff on exports to the US.

Goods from the United Kingdom and Switzerland have been hit with 10% and 31% tariffs respectively, sending shockwaves through boardrooms from Paris to Geneva.

Bernstein analyst Luca Solca has sharply downgraded his forecast for global luxury sales, predicting a 2% decline this year instead of the previously expected 5% growth.

If realised, this would mark the sector’s most prolonged slump since the early 2000s.

“Uncertainty, and the likely continuing rout in stock markets, are creating a self-fulfilling prophecy: a global recession,” Solca warned in a note to clients.

Affluent consumers tighten purse strings as markets tumble

While the new tariffs will raise costs for imported luxury goods in the US, the larger threat is the potential for a severe global downturn and sharp corrections in financial markets.

High-net-worth consumers are typically more insulated from recessions, but sustained losses in their investment portfolios could see them cut back on discretionary spending.

Solca now expects the sector’s average earnings before interest and taxes to fall by between 4% and 6% compared to 2024 levels.

However, luxury brands may be better positioned than mass-market companies to manage the tariff shock.

Most luxury houses manufacture in Europe rather than Asia, and they have long navigated export levies to the US.

Some industry insiders believe the incremental cost could be manageable.

Even if the new tariffs are stacked on top of existing duties, the impact on pricing could be relatively minor.

Since tariffs are applied to the wholesale price—generally around 20% of the retail price—brands could offset the increases by raising prices by less than 4%, according to Solca.

This is lower than the usual 5% to 7% annual price hikes many luxury brands have implemented in recent years.

Why Richemont and Hermes stand out

Among the luxury sector, Cartier-owner Richemont and French luxury giant Hermes are standing out as stocks with potential to weather the storm well, analysts say, owing to their strong brand equity and pricing power.

Oliver Chen, an analyst at TD Cowen said his top pick in the luxury sector is Swiss conglomerate Compagnie Financière Richemont, the owner of Cartier, Van Cleef & Arpels, and Montblanc.

Chen said jewellery could prove to be a more resilient category in the near term, and highlighted that Cartier and Van Cleef have not raised prices as aggressively as other luxury brands over the past two years, preserving a “strong price-to-value proposition.”

That restraint could create room for price increases down the line.

Richemont shares, listed on the Swiss stock exchange, have dropped by more than 12% in the last five days.

Citi’s Thomas Chauvet also backs Richemont, citing its pure-play focus on luxury as a strength that should support pricing power.

He similarly recommends Hermès, pointing out that the brand benefits from lower exposure to US sales compared to other luxury peers.

Hermès shares remain expensive, however, trading at 46.7 times projected earnings for the next 12 months.

Richemont, by contrast, trades at a more modest 20.4 times. Both stocks, though, are trading below their respective five-year averages of 50 for Hermès and 23.8 for Richemont.

Jefferies analysts believe Hermès is well-positioned to outperform its peers, thanks in part to its superior pricing power.

In a research note, they describe the French luxury house as a relative safe haven amid a tougher environment for the sector, with demand softening in the critical US market since mid-February and uncertainties over Trump’s proposed tariffs.

“As we look into a highly uncertain future, we maintain a relative preference for Hermès,” the analysts write.

Jefferies forecasts organic net sales growth of 8.2% for the company in the first quarter.

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Popular boomer candy ETFs like the JPMorgan Equity Premium Income ETF (JEPI) are in the spotlight this year as the stock market goes through turmoil. Most stocks have crashed, with the S&P 500 index nearing a bear market, where an asset tumbles by 20% from a local top. This article explores why the JEP ETF is beating popular S&P 500 funds like SPY and VOO.

What is the JEP ETF?

JEPI is a popular exchange-traded fund that aims to provide regular dividend payouts to investors and expose them to quality blue-chip companies.

It uses a relatively simple approach that other covered call ETFs like JEPQ and SPYI have now emulated. 

The fund invests in a group of quality blue-chip companies like Apple, Microsoft, NVDIA, and JPMorgan. 

It then uses a portion of its assets to sell call options on the S&P 500 index. A call option is a trade that gives an investor a right, but not the obligation, to buy an asset at a certain time, popularly known as the expiry period. 

The expiry period is the period when an option ends, and the trade becomes worthless if not executed. When it does this, the fund receives a premium, which is the price that the buyer pays to the seller of the call option to acquire he contract. This premium is usually quoted per share. 

The JEPI ETF makes money in three main ways. First, it benefits when the underlying stocks rise. Second, it receives the premium payment, which it then distributes to its investors through a monthly dividend. Third, it receives the dividend payouts from the underlying companies.

JEPI’s structure means that it always pays a higher dividend than the S&P 500 index. With the stock now sharply lower, its dividend yield has jumped to 8.34%, which is a good number. This means its investors receive monthly payments to offset the ETF’s crash. 

Is JEPI ETF beating the VOO and SPY ETFs this year?

Covered call ETFs have attracted scrutiny in Wall Street over the years. One argument is that they constantly underperform the benchmark indices like the S&P 500 and Nasdaq 100 indices over time. 

Historically, JEPI has always underperformed the S&P 500 index regarding its price return. It has crashed by over 17% in the last three years, while the VOO ETF has jumped by almost 11% in the same period.

However, the spread narrows a bit when you look at the total return, including the monthly dividend checks. In this case, the S&P 500 index has risen by 11%, while the JEPI fund has jumped by 7.8%. This performance is likely because the index was in a strong uptrend after the pandemic. 

JEPI and VOO ETFs have plunged this year because of Donald Trump’s trade war. It has dropped by 11.1%, while the VOO fund has dropped by 15%.

Therefore, this performance means that it makes sense for S&P 500 ETF investors also to allocate some cash to JEPI for its regular dividends. 

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The imposition of higher tariffs on US soybeans by importing countries could have a significant impact on the overall demand for this commodity. 

This decrease in demand could result from increased costs for importers, leading them to seek alternative sources or reduce imports altogether.  

Less competitive US soybeans

Higher tariffs also make US soybeans less competitive compared to those from countries with lower or no tariffs, potentially resulting in a loss of market share. 

Last Friday, the Chinese government announced retaliatory tariffs of 34% on all imported goods from the United States. 

This move comes in response to the recent escalation of trade tensions between the two countries, and the new tariffs are set to take effect this week. 

The decision to impose these counter-tariffs is expected to have significant implications for businesses and consumers on both sides of the Pacific, potentially leading to higher prices, supply chain disruptions, and a further deterioration of the bilateral trade relationship.

China will impose additional tariffs of 10-15% on certain energy and agricultural commodities imported from the US.

This measure is a response to the tariffs the US introduced earlier in March.

Carsten Fritsch, commodity analyst at Commerzbank AG, said in a report:

It is therefore very likely that Chinese purchases of US agricultural products will be significantly lower,

This is especially relevant for soybeans.

China accounted for half of US soybean exports

The US Department of Agriculture reported that 52.4 million tons of soybeans, valued at $24.6 billion, were exported from the US last year.

China was responsible for approximately 50% of this.

China will mostly import soybeans from Brazil in the next few months due to seasonal reasons, so there won’t be many changes in the short term, Fritsch said.

Chinese soybean purchases in the US typically increase with the arrival of the new autumn harvest.

“This is unlikely to happen this year.” Fritsch said. 

As in autumn 2018, China is likely to continue to source most of its soybean imports from Brazil next autumn, according to Commerzbank. 

Fritsch noted:

Demand for US soybeans is therefore likely to be significantly lower, which should also have a negative impact on the price outlook.

The soybean price dropped below $10 per bushel on Friday.

Reduction in soybean acreage

The potential shift by China away from the US as a primary soybean supplier carries significant implications that extend beyond the immediate economic impact. 

This move could instigate a ripple effect, influencing US farmers’ planting intentions for the upcoming seasons. 

Faced with a reduced demand from a major importer, farmers may be compelled to reconsider their acreage allocation for soybeans, potentially opting for alternative crops that offer greater market stability or align with shifting global trade dynamics. 

This adjustment in planting strategies could lead to a cascading impact on the agricultural landscape, affecting crop prices, land use patterns, and the overall structure of the US agricultural sector. 

Moreover, the loss of a major export market could have broader economic ramifications, impacting rural communities, agricultural businesses, and the overall balance of trade for the US.

Corn acreage may increase

The USDA’s survey results, released last week, indicate that soybean acreage was expected to decrease by 4% from the previous year.

“The reduction could now be even greater,” Fritsch said. 

The most important customer, Mexico, has been exempted from the reciprocal US tariffs, and China is a less important buyer. Therefore, instead of reducing, corn planting could be increased, according to Fritsch. 

The area used for spring wheat planting may be expanded beyond initial projections.

As a result, prices for corn and wheat could also drop.

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