Lumen: Unwarranted Excitement

Summary:

  • Lumen Technologies, Inc.’s stock surged on deals with Corning and Microsoft, but these are supplier and partner deals, not major customer agreements.
  • Despite investing in fiber network capacity for AI traffic, Lumen’s financials remain weak with ongoing revenue declines and high debt levels.
  • Lumen’s recent rally is unwarranted, and investors should be cautious as the company is unlikely to see significant sales growth or positive cash flows.

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Over the last week or so, Lumen Technologies, Inc. (NYSE:LUMN) has exploded higher to levels the $1 stock hadn’t seen in a couple of years. The telecom network provider has burst higher on some apparent excitement


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